Executives and engineers resigned one after another at Stability AI, the developer of image generation AI ``Stable Diffusion'', and CEO's leadership is questioned
It is reported that the AI startup `` Stability AI '', known for the development of image generation AI `` Stable Diffusion '', is struggling to raise development funds due to the development of competitors and the successive resignations of key executives and engineers.
Stability AI's Lead Threatened by Departures, Concerns Over CEO - Bloomberg
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Stability AI, an AI startup based in London, England and Los Altos, USA, has released an AI model ` ` Stable Diffusion '' that can generate images based on input prompts and has attracted attention. After the release of Stable Diffusion, more than $ 100 million (approximately 14 billion yen) was invested in Stability AI, and engineers and scientists were pulled out from technology companies such as Google, Amazon, and Adobe to develop further AI-related products. was given.
However, in the face of intense development competition with competitors developing image generation AI such as ' Midjourney ' and ' Adobe Firefly ', various problems emerged with Stability AI, and the superiority in the image generation AI field was lost. It was broken.
Since March 2023, at least six senior executives have stepped down at Stability AI, including Chief Operating Officer Ren Ito and Research Director David Ha. Regarding the resignations of several senior executives, Emad Mostak, co-founder of Stability AI, said, 'Employee resignation is inevitable in any company.' If you don't feel like it, you can quit your job.'
Mr. Mostak's optimistic reaction was met with a cold look from Stability AI employees and former employees, and Mr. Ha said, 'Mr. Mostak relentlessly pursues ideas that other employees do not understand. Sometimes it was difficult to grasp exactly what Stability AI was aiming for and how it was trying to achieve that idea.' ``Stability AI's corporate culture was very secretive, resulting in a chaotic corporate structure and little communication about which team was doing what,'' said an anonymous former employee. says.
Against Mr. Mostak, co-founder Saidera Hodes sued Mr. Mostak, claiming that he was defrauded of Stability AI shares worth more than 68 billion yen for less than 20,000 yen. has been reported .
Co-founder sues Stability AI, the developer of Stable Diffusion, as being deceived for less than 20,000 yen for shares worth more than 68 billion yen - GIGAZINE
In addition, foreign media Forbes published an article criticizing Mr. Mostak as having a history of exaggeration. On the other hand, Mr. Mostak publishes counterarguments against critical reports on his blog.
The CEO of the developer of the image generation AI ``Stable Diffusion'' publishes a blog where he refutes the report that he is a big liar-GIGAZINE
While criticism of Mr. Mostak has continued, Christian Cantrell, former vice president of Stability AI, said, ``I understand that many people have doubts about Mr. Mostak. He is a very intelligent and warm person,' he said, defending Mr. Mostak's style and management skills.
However, it was reported that Stability AI failed to raise funds at the desired valuation of $ 4 billion (about 570 billion yen), and $ 70,000 (about 10 million yen) for another generation AI company. It is reported that they are having trouble raising funds, such as being reported that they have not paid the full amount within the deadline.
Meanwhile, Stability AI, which released a revolutionary image generation AI called Stable Diffusion, is about to turn into a profitable venture business. ``It is important to find a unique niche to achieve further success in the image generation AI field as competitors develop,'' Ha suggests.
“The startup environment is not for everyone,” said Peter O’Donoghue, CFO of Stability AI. They are trying to bring order to the chaotic Stability AI.'
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