AI startup Stability AI has raised just under $50 million in investment in the form of convertible notes from American semiconductor giant Intel, according to a Bloomberg report.
The fund, which closed in October, is vital for the UK-based startup, which has faced difficulties in achieving higher valuations and aims to expand further, with formal announcements on strategic funding expected to be made soon.
He stated: “We closed strategic financing ourselves last month (to be announced soon) and are now replacing traditional fundraising with more strategic fundraising.
“This is rapidly becoming the norm at AI scale because everyone is now realizing that generative AI is truly transformative and therefore of huge strategic importance, but true expertise is rare and hard to find (harder than GPUs!),” he added.
The funding round comes at a critical juncture. Stability AI, the company that initially came to prominence with a $101 million seed round last year, earned it a $1 billion valuation and established its unicorn status in the startup space.
Intel’s investment in Stability AI comes on the heels of the tech giant’s announcement in September of the development of an AI supercomputer using Xeon processors and 4,000 Gaudi2 AI processors . Stability AI has been referred to as the “anchor customer” in this context.
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The report alleges discrepancies regarding Coatue’s general partner, Sri Viswanath.
Stability AI’s board. Viswanath was a conspicuous absence from the board meeting earlier this year and a Coatue lawyer attended instead.
In October, it was reported that Coatue had left Stability AI’s board, potentially affected by Intel’s investment and Coatue’s stake in rival Advanced Micro Devices Inc.
Despite internal challenges, Stability AI’s recent funding underscores continued interest from major venture capital firms and strategic investors.
Moreover, the company’s ability to raise significant financing indicates its determination to overcome challenges and navigate the competitive market. The artificial intelligence landscape .
No statement has been made about financing from the chip manufacturer giant to date, but the investment is seen as a strategic move following Intel’s latest move in the field of artificial intelligence supercomputing and positioning. Stability AI as a key player in its ambitious plans.
