Stability AI

stability.ai →

-88%

est. 2Y upside i

AI & MLSeed

Open source generative AI company building Stable Diffusion models

Rank

#4250

Sector

Artificial Intelligence

Est. Liquidity

~3Y

Data Quality

Data: High

Stability AI operates in a dynamic generative AI market with innovative products and strategic partnerships.

Last updated: March 10, 2026

Bull (10%)+75%

Under new CEO Prem Akkaraju, Stability AI successfully pivots to a robust monetization strategy, leveraging enterprise partnerships (NVIDIA, Electronic Arts, WPP, Universal Music Group) and new product releases (Stable Diffusion 3.5 NIM, Stable Audio 2.5) to accelerate revenue growth to 30-40% YoY, reaching ~$80-90M by 2028. The company also successfully defends against the Getty Images appeal in the UK and resolves the US lawsuit favorably. This improved financial performance and market position justify a valuation of $1.75B.

Base (25%)-10%

Stability AI stabilizes under new leadership but struggles to significantly accelerate its ~5% YoY revenue growth due to intense competition and the commoditization of open-source models. While product development continues, profitability remains elusive. An M&A exit occurs at a slight discount to the current $1.0B valuation (e.g., $900M), meaning common stock holders see very limited returns after accounting for the $225M in investor liquidation preferences.

Bear (65%)-50%

The ongoing Getty Images lawsuit in the US results in significant penalties or operational restrictions, while the UK appeal is lost. Dominant incumbents like OpenAI and Google further erode Stability AI's market share and pricing power. The company's high burn rate and inability to achieve profitability lead to severe financial distress, necessitating a down round or an acquisition at $500M, which would effectively wipe out all common stock value due to the $225M in liquidation preferences.

Est. time to liquidity~3.0 years

Adjusted for competitive dynamics: -63% (raw: -88%, adjustment: -35%)

Preference Stack Risk

high

Funding Intensity

23%

Investors hold $225M in liquidation preferences, meaning common stock holders would only see returns after this amount is paid out in an exit at or above the current $1.0B valuation.

Dilution Risk

high

Given the unprofitability and high burn rate, further funding rounds are likely before a liquidity event, leading to additional dilution for existing equity holders.

Secondary Liquidity

none

There is no indication of active secondary markets or tender offers for Stability AI equity.

Other — 11 roles

Director of Data Strategy & Operations · United States
Enterprise Account Executive, APAC · Singapore
Global Director of Partnerships · United States
+8 more →

View all 11 open roles at Stability AI →

Last updated: March 10, 2026

Questions to Ask at the Interview

Strategic questions based on Stability AI's data — designed to show you've done your homework.

1
“Given the intense competition from well-funded incumbents like OpenAI and Google, how does Stability AI plan to differentiate its offerings and establish a stronger competitive moat beyond its open-source foundation?”
2
“With current revenue at ~$50M and only 5% YoY growth, what are the concrete strategies to significantly accelerate revenue growth and achieve profitability within the next 2-3 years, especially considering the reported high burn rate?”
3
“Considering the $225M in total funding on a $1.0B valuation, how is the company thinking about a liquidity event timeline for common stock holders, and what are the key milestones to achieve a favorable outcome?”