Tuesday, September 16, 2025

Stability AI Isn’t Very Stable, Defaults on AWS and Google Cloud Payments

Generative AI startup Stability AI, known for the deep learning, text-to-image model Stable Diffusion, has been grappling with mounting financial challenges. Its founder Emad Mostaque stepped down in March as CEO and board member. According to a report by Forbes, the company struggled to pay its cloud computing bills last year as development costs for its AI models skyrocketed.

The report painted a picture of a startup spiraling out of control financially. According to an internal October forecast, Stability AI was projected to spend a staggering $99 million on computing costs in 2023 alone to develop its AI models. The company was already falling behind on paying cloud providers like Amazon Web Services, with plans not to pay $8 million in outstanding August bills.

In total, Stability AI owed millions more to AWS, Google Cloud, and CoreWeave by late 2023. The exact amount currently owed is unclear. Mostaque had previously boasted that Stability’s AWS cluster ranked among the world’s top 10 supercomputers.

The company’s financial difficulties appear to have impacted an anticipated $50 million investment from Intel. Forbes reports Intel invested only $20 million, likely due to Stability’s instability.

Struggling to monetize Stable Diffusion, Stability AI reportedly considered reselling its computing power as a revenue stream. Internal documents projected this managed services offering could bring in $139 million in 2024 — 98% of anticipated revenue.

However, former employees claimed there was no real management involved, raising ethical concerns about potentially violating contracts with providers like AWS through unauthorized reselling activity. “This was some of the dirtiest feeling stuff,” one said.

In announcing his resignation in March, Mostaque cited a desire “to pursue decentralized AI.” He appointed COO Shan Shan Wong and CTO Christian Laforte as interim co-CEOs while the company looks for a permanent chief executive.


Information for this story was found via Forbes, TechCrunch, Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Elon Musk Wants to Create New AI Start-Up to Compete With OpenAI

Elon Musk is reportedly developing plans to launch a new artificial intelligence start-up to compete...

Saturday, April 15, 2023, 01:34:00 PM

BHP: Rising AI Demand Could Trigger Copper Crisis by 2050

The rapid rise of artificial intelligence is transforming industries worldwide, but it may also create...

Wednesday, September 18, 2024, 02:49:00 PM

A Week Before Trump Transition, Biden Team Proposes Sweeping AI Chip Controls

The Biden administration proposed new controls Monday over the export of advanced AI computer chips,...

Tuesday, January 14, 2025, 12:59:00 PM

DeepSeek Says Its New AI Model Tops Industry Leaders in Image Creation

DeepSeek, a Chinese artificial intelligence company that recently surprised the tech world, announced Monday that...

Tuesday, January 28, 2025, 02:59:00 PM

Boosting Canada’s AI Sector: Ottawa Pledges $2.4 Billion Package To Secure “AI Advantage”

Prime Minister Justin Trudeau unveiled a groundbreaking $2.4 billion investment plan this weekend, drawn from...
Monday, April 8, 2024, 11:44:23 AM