Stability AI Faces Leadership Conflict and Potential Sale Amid Investor Pressure

Despite internal turmoil, the AI startup secures a $50 million investment from Intel.

Stability AI, a British artificial intelligence startup, is facing internal conflict as one of its shareholders, Coatue Management, has called for the resignation of CEO Emad Mostaque.
Coatue Management claims that Mostaque's leadership has led to a chaotic culture and several leadership departures, including the head of the audio division over a disagreement about copyright issues.
Despite the internal conflict, Stability AI recently raised around $50 million from Intel and maintains that the investment underscores investor confidence.
Stability AI has explored selling the company and has held early-stage conversations with multiple companies, though a deal is not imminent.
The company is known for its AI image generator, Stable Diffusion, which has been the subject of controversy and legal battles over copyright breaches.