Startup Behind AI Image Generator Stable Diffusion Is In Talks To Raise At A Valuation Up To $1 Billion

A collage of images made using Stability AI's online tool, which allows users to create AI-generated images by typing in a text prompt: (from left) a portrait of Beyonce in the style of Vincent van Gogh, a cyberpunk cityscape in the style of Japanese artist Hokusai and a science fiction alien world. With the image generator Stable Diffusion, you can conjure within seconds a potrait of Beyoncé as if painted by Vincent van Gogh, a cyberpunk cityscape in the style of 18th century Japanese artist Hokusai and a complex alien world straight out of science fiction. Released to the public just two weeks ago, it's become one of several popular AI-powered text-to-image generators, including DALL-E 2, that have taken the internet by storm. Now, the company behind Stable Diffusion is in discussions to raise $100 million from investors, according to three people with knowledge of the matter. Investment firm Coatue expressed initial interest in a deal that would value the London-based startup Stability AI at $500 million, according to two of the people.