Cash-strapped Stability AI raises $80 million with new CEO and board


FILE PHOTO: Stability.ai logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) - Stability AI said on Tuesday it has raised funds and appointed industry veteran Prem Akkaraju as its top boss, months after the exit of founder and CEO Emad Mostaque compounded troubles at the cash-strapped generative AI startup.

The firm has raised about $80 million in funding, according to a person familiar with the matter, from a group of investors including Coatue Management, Lightspeed Venture Partners and former Google CEO Eric Schmidt.

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