Stability AI Raises $76 Million in Funding, Backed by All Three Majors

AI startup Stability AI has closed a $76 million Series B funding round backed by a group of investors that includes Warner Music Group, Universal Music Group, and Sony Music Group. It brings the company’s total funding raised to $232 million under CEO Prem Akkaraju, who was appointed to the role in June 2024.

Why it matters:

• As Music Week points out, Stability AI is the first AI company to secure direct equity investment from all three majors in a funding round.

• The announcement comes roughly a year after the startup signed licensing agreements with UMG, WMG and Electronic Arts to build new AI models using each company's catalogs and IP.

• In May, Stability AI launched its latest family of audio models, Stable Audio 3.0, backed by licensed data.

Other investors:

• Also investing in the Series B round are gaming company Electronic Arts and investment firms AMD Ventures and Pacific Alliance Ventures.

• They join existing investors including filmmaker James Cameron, Napster co-founder Sean Parker and former Google head Eric Schmidt.

• Parker and Schmidt returned in the Series B round, as did Greycroft, Kadmos Capital and Coatue.

What they said:

• Prem Akkaraju: “This unmatched group of investors is an affirmation of our vision where generative AI empowers every producer, musician and storyteller. Stability is unique in the AI field because we are creative people making tools for creatives. Developing industry-defining technology means assembling a team of industry-defining titans and that’s what we have done here.”