UK-based AI image developer Stability AI is reportedly considering a sale following calls for CEO Emad Mostaque to step down and the departure of several senior managers over the company’s use of copyrighted content. American technology investment company Coatue Management has questioned Mostaque’s leadership and requested details on executive pay. While no buyer has been confirmed, AI marketing tool developer Jasper and Canadian AI developer Cohere have emerged as possible contenders. Stability AI has not yet responded to requests for comment. The company’s popular Stable Diffusion generative AI model, which recently added video features, has been valued at $1 billion by Coatue. However, the tool has faced controversy due to its potential for creating AI-generated deepfakes. Stability AI previously signed onto the Biden Administration’s pledge to develop AI safely and participated in the UK Safety Summit. The company’s VP of Audio, Ed Newton-Rex, resigned over the use of copyrighted material in training AI models, highlighting a broader industry issue. Newton-Rex stated that his objection was not solely against Stability AI but against the approach taken by many generative AI companies.
