Stability AI discusses sale amid cash crunch, The Information reports
Adds details from the report in paragraph 2 and background from paragraphs 3 to 5
May 15 (Reuters) -British artificial intelligence startup Stability AI held discussions with at least one potential buyer in recent weeks about a sale as it faces a cash crunch, The Information reported on Wednesday, citing a person involved in the talks.
In the first quarter of 2024, Stability AI generated less than $5 million in revenue and lost more than $30 million, the report said, adding that the company currently owes close to $100 million in outstanding bills to cloud computing providers and others.
Stability AI did not immediately respond to an emailed request from Reuters for comment on the report.
The reported sale discussions come a month after the company laid off some staff as part of a restructuring process soon after founder Emad Mostaque resigned as the company's CEO.
The company, which has also released AI models to generate audio and video using text prompts, said in October that it had nearly 200 employees around the world.
Reporting by Akanksha Khushi in Bengaluru; Editing by Sherry Jacob-Phillips and Muralikumar Anantharaman
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