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FreemiumBy Stability AI Ltd.

Stability AI

Stability AI created Stable Diffusion, the model that started the generative AI revolution. Open-source leader in image, video, audio, 3D. $1B valuation. 80% market share. Free for <$1M revenue.

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Description

Stability AI

Overview

Stability AI is the pioneer company that started the generative AI revolution with the release of Stable Diffusion in August 2022. It's the global leader in open-source models for image, video, audio, 3D, and language generation.
Founded in 2019 by Emad Mostaque and Cyrus Hodes in London, UK. New CEO Prem Akkaraju (ex-Weta Digital) since June 2024, with Sean Parker (ex-Facebook) as Chairman and James Cameron on the Board.
With $181M in total funding, $1B valuation (Unicorn), and 270M+ model downloads, Stability AI powers approximately 80% of AI-generated images worldwide.

The Model Family

🖼️ Image - Stable Diffusion

ModelParametersDescription
SD 3.5 Large8BMost powerful, up to 1MP resolution
SD 3.5 Large Turbo8BFast version, some quality tradeoff
SD 3.5 Medium2.6BOptimized for consumer hardware
SD 3.5 Flash-Ultra-fast
SDXL 1.03.5BPrevious flagship, still popular
Stable Image Ultra-Best quality enterprise (API)
Stable Image Core-Quality/speed balance
SD 3.5 Features:
  • Multimodal Diffusion Transformer (MMDiT)
  • 3 text encoders: OpenCLIP-ViT/G, CLIP-ViT/L, T5-xxl
  • QK-Normalization for stability
  • Better typography and complex prompts
  • Resolutions up to 2MP

🎬 Video

ModelDescription
Stable Video Diffusion (SVD)Foundation video model, image-to-video
Stable Video 3D (SV3D)Image-to-3D video, multiple angles
Stable Video 4D (SV4D)Dynamic multi-angle videos
Stable Virtual CameraNovel view synthesis

🔊 Audio

ModelDescription
Stable Audio 2.5Enterprise text-to-audio, music, SFX
Stable Audio OpenOpen-source, short samples

🗣️ Language

ModelDescription
StableLM 2Open-source LLM (1.6B, 3B, 7B params)
Japanese Stable LMSpecialized for Japanese

🎲 3D

ModelDescription
Stable Fast 3D (SF3D)Image-to-3D in seconds
TripoSR3D reconstruction (partnership)
Stable Zero123Single image to 3D

Products and Platforms

DreamStudio

Official web application for creative professionals:
  • Image generation and editing
  • Granular parameter control
  • Brand-safe outputs
  • $10 = 1,000 credits (new users: 25 free credits)

Stable Assistant

Multimodal conversational chatbot with Stable Image Ultra.

Developer Platform API

  • Access to all models
  • Pay-as-you-go with credits
  • 25 free credits on signup
  • Enterprise pricing available

Clipdrop

AI image editing tool suite:
  • Remove background
  • Cleanup
  • Relight
  • Upscale
  • Uncrop

Pricing (2025)

Credit Model

  • $1 = 100 credits
  • $10 = 1,000 credits
  • Standard image: ~0.2 credits

API Pricing (per image/operation)

ModelCredits
Stable Image UltraHigher cost
SD 3.5 LargeMedium-high
SD 3.5 Large TurboMedium
SD 3.5 MediumLow
SDXL 1.0Low

Licenses

UseRequirement
Personal/ResearchFree (Community License)
Commercial <$1M revenueFree (Community License)
Commercial >$1M revenueEnterprise License required

Enterprise

  • Custom volume-based pricing
  • Indemnification
  • Dedicated support
  • SLAs
  • On-premises deployment

Integrations and Partners

Cloud Providers

  • Amazon Bedrock - SD available
  • Google Cloud - Vertex AI
  • Microsoft Azure - Integration

Enterprise Partners

  • WPP - Strategic partnership + Investment (Mar 2025)
  • HubSpot - On-brand visuals
  • Mercado Libre - 25% higher CTR
  • Arm - Mobile optimization

Open Source

  • Hugging Face - Models available
  • ComfyUI - Recommended local
  • Diffusers - Python library

Use Cases by Industry

Advertising & Marketing

  • Campaign visual generation
  • Product variations
  • Personalization at scale

Entertainment & Gaming

  • Concept art
  • Asset generation
  • Storyboarding

E-commerce

  • Product photography
  • Background removal
  • Lifestyle imagery

Media & Publishing

  • Editorial illustrations
  • Cover art
  • Visual content

PROS ✅

  • Pioneer Open-Source - Started the revolution with SD
  • 80% Market Share - Majority of AI-generated images
  • Multimodal - Image, video, audio, 3D, language
  • Free for Most - Generous Community License
  • 270M+ Downloads - Massive community
  • Local Deployment - Runs on consumer GPUs
  • Customizable - Fine-tuning, LoRA, ControlNet
  • Enterprise Ready - Indemnification, support, SLAs
  • James Cameron Board - Hollywood credibility
  • WPP Partnership - Enterprise validation
  • Constant Innovation - Frequent new models
  • ComfyUI Ecosystem - Advanced workflows

CONS ❌

  • Getty Images Lawsuit - Copyright controversy (won UK Nov 2025)
  • Leadership Turmoil - CEO changes, layoffs
  • Financial Challenges - Debt issues in 2024
  • API Pricing Changes - Increases August 2025
  • No Default Indemnification - Enterprise only
  • Quality vs Midjourney - Less "artistic" out-of-box
  • Learning Curve - Requires prompting skill
  • NSFW Concerns - Model can generate inappropriate content
  • Model Size - Large models require hardware

Why Choose Stability AI?

Choose Stability AI if:
  • You want full control (open-source)
  • You need local/on-premises deployment
  • Your annual revenue is <$1M (free)
  • You want to customize models (fine-tuning)
  • You need video, audio, 3D besides image
  • You value community and open ecosystem
  • You work in gaming, VFX, entertainment
Don't choose Stability AI if:
  • You want "artistic" results out-of-box (→ Midjourney)
  • You have no technical knowledge
  • You need simple API without complications
  • You have strict copyright concerns
  • Very limited budget for enterprise

vs Competitors

vsStability AI WinsCompetitor Wins
MidjourneyOpen-source, local, free, customizableBetter aesthetics, easier
DALL-E 3Free, control, full multimodalChatGPT integration, safety
Adobe FireflyFree, more powerfulCreative Cloud integration, ethical training
FluxMore established, ecosystemComparable quality, open
Leonardo AIMore models, customizationBetter UX, community

Company Information

  • Founded: 2019
  • Headquarters: London, UK (operations in LA)
  • Founder: Emad Mostaque (left March 2024)
  • Current CEO: Prem Akkaraju (ex-Weta Digital)
  • Chairman: Sean Parker (ex-Facebook President)
  • Board: James Cameron
  • Employees: ~45 (2024, after layoffs)
  • Valuation: $1B (Unicorn)
  • Total Funding: $181M

Investment Rounds

DateRoundAmountInvestors
Sep 2022Seed$101MCoatue, Lightspeed
Jun 2023Seed~$10MSound Ventures
Jun 2024Seed$80MCoatue, Lightspeed, Greycroft, Sean Parker, Eric Schmidt
Mar 2025Strategic-WPP

Notable Investors

Coatue Management, Lightspeed Venture Partners, Greycroft, Sound Ventures, Sean Parker, Eric Schmidt, Prem Akkaraju, WPP

Metrics

  • 270M+ downloads of models
  • 80% of AI image market
  • 150M+ downloads Stable Diffusion specifically
  • #1 most-liked text-to-image on Hugging Face
  • 1,000+ images/minute on Amazon Bedrock

Recognition

  • Stable Audio - TIME Best Inventions 2023
  • Stable Diffusion - Started the generative AI revolution (Aug 2022)
  • UK Court Victory - Getty Images lawsuit (Nov 2025)

Important Notes

Community License

  • Free for research, non-commercial
  • Free for commercial if revenue <$1M annually
  • Enterprise license required if >$1M

Acceptable Use Policy

Restrictions on generating:
  • CSAM
  • Deepfakes of people without consent
  • Misinformation
  • Illegal content

Key Features

Stable Diffusion 3.5 Large 8B parameters

SD 3.5 Turbo fast generation

SD 3.5 Medium consumer hardware

SDXL 1.0 previous flagship model

Stable Image Ultra best quality API

Stable Video Diffusion image-to-video

Stable Video 3D multiple angles

Stable Video 4D dynamic multi-view

Stable Audio 2.5 music and SFX

Stable Audio Open source

StableLM 2 language models

Stable Fast 3D image-to-3D seconds

DreamStudio official web app

Clipdrop editing tools

API Developer Platform

ControlNets Blur Canny Depth

Community License free under $1M

Local deployment consumer GPUs

Fine-tuning LoRA customization

ComfyUI advanced workflows

Use Cases

Image generation text-to-image

Image-to-image editing variations

Inpainting outpainting extension

Concept art games movies

Product photography e-commerce

Marketing advertising campaigns

Storyboarding pre-production

Asset generation gaming

Background removal product shots

Upscaling resolution enhancement

Video generation short clips

3D asset creation from images

Audio music generation

Sound effects SFX creation

Brand visual generation

Editorial illustrations

Social media content

NFT digital art creation

Architectural visualization

Fashion design prototyping

Information

Company

Stability AI Ltd.

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