British artificial intelligence startup Stability AI is in talks with a group of investors for a immense equity investment to inject funds into the cash-strapped company, a company spokesman told Reuters on Thursday.
“Stability AI has an exclusive partnership with a world-renowned syndicate of technology investors,” a spokesman said.
The Information, which first reported the discussions, said the investor group included Facebook’s first CEO, Sean Parker, and former CEO of visual effects company Weta Digital, Prem Akkaraju.
Stable AI generated less than $5 million in revenue and lost more than $30 million in the first quarter, and now has outstanding bills of nearly $100 million to cloud computing providers and others, the news outlet added.
The reported discussions come weeks after Stability AI laid off some staff as part of its restructuring process and its founder Emad Mostaque resigned as CEO.
The company, which has released artificial intelligence models to generate audio and video using text prompts, said in October last year that it employs almost 200 people around the world.
AI stability investors include venture capital firm Lightspeed Venture Partners, actor Ashton Kutcher’s Sound Ventures, investment management firm Coatue and chipmaker Intel, according to data firms Crunchbase and Pitchbook.
