Stability AI Cuts 10% of Workforce Amid Financial Struggles

The layoffs follow the resignation of CEO Emad Mostaque and are part of a strategic plan to stabilize the company's finances.

Stability AI, known for its Stable Diffusion model, has laid off about 20 employees, which is roughly 10% of its global workforce.
The layoffs were announced by interim co-CEOs Shan Shan Wong and Christian Laforte as a necessary step to 'right-size' the business.
Financial challenges include massive losses due to high operational costs and a significant expenditure on cloud services.
The company continues to release new AI models and features despite the layoffs, aiming to attract more business.
Stability AI faces additional challenges from multiple copyright infringement lawsuits related to its AI models.