Stability AI raises $76M Series B from venture and strategic investors

The round was announced on a Tuesday, Aug. 25, with Universal Music Group, Sony Music Group, Warner Music Group, Electronic Arts, AMD Ventures and Pacific Alliance Ventures among the investors. Existing backers Coatue, Greycroft, Kadmos Capital, Sean Parker and Eric Schmidt also took part. Coatue co-founder Thomas Laffont joins the board. Proceeds go to the creative production suite, applied research and professional services. No valuation was disclosed. The raise follows a rough stretch. In mid-2024 the company faced roughly $100 million in debt and $300 million in cloud obligations. CEO Prem Akkaraju joined in June 2024. The round follows deals with Universal, Warner and EA to build models on their catalogues and intellectual property. Stability now sells tools to professional creatives, including a Stable Audio 3.0 plugin for digital audio workstations. The investor mix is also awkward for the labels. Sony is still suing Suno and Udio. For founders, the signal is that rights holders are choosing to own equity in a licensed-data partner rather than only litigate. Strategic cap tables can bring catalogue access and distribution, but they also tie a company to its backers' commercial and legal interests. Startups selling generative tools into media and gaming may find that licensing deals and investor rosters now count as much as model quality.