The British AI nugget failed to raise funds. Its investors want the CEO to leave.
It’s no longer time to party at Stability AI. In the fall of 2022, the British start-up, publisher of the image generator Stable Diffusion, entered the tech unicorn club with fanfare, with a valuation of more than $1 billion. Buoyed by the wave of enthusiasm around generative artificial intelligence, it raised $101 million and celebrated the event during a big evening in San Francisco.
A year later, its main investor, Coatue Management, demanded the head of the founder and director of Stability AI. In a letter sent in October to the management of the start-up, he demanded the departure of Emad Mostaque, a former hedge fund manager. Coatue Management reportedly previously pushed the company to have a president or co-CEO.
Under pressure from its investors, the London start-up is seeking to sell itself, Bloomberg reveals. She approached the Canadian Cohere and the American Jasper, who sell solutions…