Stability AI, an artificial intelligence startup, has closed a $76 million Series B funding round that includes Warner Music Group, Universal Music Group, and Sony Music Group as investors. The round makes the company the first AI company to receive direct equity investment from all three major music groups in a funding round.
The financing brings Stability AI’s total raised to $232 million under CEO Prem Akkaraju, who took the role in June 2024.
Investor line-up
Other participants in the Series B include gaming company Electronic Arts and investment firms AMD Ventures and Pacific Alliance Ventures.
Existing investors joining the round include filmmaker James Cameron, Napster co-founder Sean Parker, and former Google head Eric Schmidt. Parker and Schmidt returned for the Series B, as did Greycroft, Kadmos Capital, and Coatue.
Licensing and product context
The funding follows roughly a year after Stability AI signed licensing agreements with UMG, WMG, and Electronic Arts to build new AI models using each company’s catalogs and intellectual property.
In May, the company launched Stable Audio 3.0, its latest family of audio models, backed by licensed data.
Prem Akkaraju, CEO of Stability AI, said:
“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.”
