Generative AI startup Stability AI has received funding from Intel Corp., a report by Bloomberg stated today. The fresh injection of funds has been life-saving for the UK startup which has been going through turbulent times.
The report stated that the company raised just under $50 million in the form of a convertible note in the deal, which closed in October.
A spokesperson released a statement saying that Stability AI had “received repeated interest over the last few months in fundraising from both major venture capital and strategic investors.” Company CEO Emad Mostaque tweeted on X on Tuesday saying, “We closed strategic funding ourselves last month (announcements soon).” Intel hasn’t commented on the deal yet.
Last month, Intel announced it was building a large AI supercomputer using Xeon processors and 4,000 Gaudi2 AI hardware accelerators.
(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)
A Bloomberg report had earlier stated that investors at Coatue Management and Lightspeed Venture Partners have left the board of Stability AI after disagreements around where the company was headed. One person had shared that Coatue’s exit from the board was because of Intel’s investment in the startup.
On 27 October, another Bloomberg report said that the company’s general counsel, Adam Avrunin, and Ozden Onder, the chief people officer had departed that month.
Last October, the startup came under the limelight after the boom in generative AI. Known for its AI text-to-image generator, Stability AI had announced a $101 million seed round valuing it at $1 billion. But since then, the company’s high expenses and slowing revenue projections have become a cause of concern.
