Intel has stepped in to help UK’s Stability AI. It is giving the struggling generative AI startup a much-needed boost. It is reported that the company gave Stability AI a financial boost of nearly $50 million through a strategic investment. The deal, struck in October, is a big deal for the startup that was having a tough time.
Stability AI, known for its cool AI picture-making tech, got a lot of notice. They received $101 million in October and are now valued at $1 billion. But the excitement did not last long because it ran into problems with high costs and slower earnings in the busy world of generative AI.
Intel’s recent funding is a big deal for Stability AI, giving them a boost when investors left and the company was going through changes. The company spokesperson shared that Stability AI got attention from big investors recently and it all led to a successful fundraising effort. Company CEO Emad Mostaque hinted at the strategic funding in a tweet, promising official announcements in the near future.
While Stability AI celebrates this new lease on life, it comes on the heels of disagreements among investors. News says that Coatue Management and Lightspeed Venture Partners, two big investors, left Stability AI’s board because they didn’t agree on where the company was heading. Notably, Coatue Management’s exit is rumored to be linked to Intel’s investment in the startup.
Intel made headlines last month with the announcement of a large AI supercomputer project utilizing Xeon processors and 4,000 Gaudi2 AI hardware accelerators. The recent investment in Stability AI further highlights the commitment of Intel to advancing generative AI technologies.