TLDR: Lightspeed Ventures and Coatue invested $7.3 million in Stability.AI, which specializes in AI technology. The investment signals a shift in focus from crypto to AI startups among VCs. Stability.AI raised $101 million at a $1 billion valuation in 2022, with investors including Greycroft Partners and Sean Parker’s Retspan.
In a move reflecting a changing landscape in the tech investment world, crypto venture capitalists Lightspeed Ventures and Coatue have collectively invested over $7.3 million in Los Angeles-based startup Stability.AI. The company, known for its AI technology, raised a total of $80 million in investments, with well-known names in the industry backing its growth.
The investment round also saw the appointment of a new CEO, Prem Akkaraju, who will earn a base salary of $500,000 per year for four years. Stability.AI, with its flagship product, Stable Diffusion, has garnered significant attention for its ability to turn text prompts into images, audio, and video, all without any involvement of crypto technology.
The investor list includes major players like Lightspeed Ventures, Coatue, Greycroft Partners, and even former Google CEO Eric Schmidt. The move towards investing in AI plays rather than blockchain technology startups is reflective of the current trend in the venture capital industry, with AI-focused applications like Stable Diffusion and OpenAI’s ChatGPT app capturing investors’ interest.
As the shift away from crypto investments continues, Stability.AI positions itself at the forefront of the AI technology sector, with plans for further expansion and development fueled by the recent investments. With a reported valuation of over $1 billion in 2022, Stability.AI is set to make a significant impact on the tech landscape moving forward.
