Stability AI Secures $76M Series B with Unprecedented Music Industry Backing

Stability AI announced on Tuesday (Aug. 25) that it has closed a $76 million Series B strategic funding round, including investments from the three major music companies — Universal Music Group, Sony Music and Warner Music Group — as well as Electronic Arts. This makes Stability the first AI company to receive equity investment from all the majors in a funding round, as reported by Billboard.

The round also includes investments from existing strategic partners Electronic Arts, Universal Music Group, and Warner Music Group, according to a press release distributed by PR Newswire. The capital will fuel the development of its product suite for creative production, deepen its applied research discipline, and expand its professional services arm, as stated in a company blog post quoted by Billboard.

A Who's Who of Investors

The four entertainment firms join other investors like Stability AI chairman and Napster founder Sean Parker, Coatue, Greycroft, Kadmos Capital and Eric Schmidt in the Series B round, investing for a second consecutive round under new leadership, Billboard reported. PR Newswire's release adds that the round welcomes investment firms AMD Ventures and Pacific Alliance Ventures, and lists existing investors including Lightspeed Venture Partners, Mantis Capital, Sound Ventures, and WPP, alongside individual investors James Cameron, Kevin Mayer, Mark Burnett, Patrick Whitesell, Prem Akkaraju, and Robert Nelsen.

Coatue, Greycroft, Kadmos Capital, Sean Parker, and Eric Schmidt are also participating in the Series B, investing for a second consecutive round under new leadership, according to PR Newswire.

Funding Milestone Under New Leadership

Total funding for Stability AI since the appointment of CEO Prem Akkaraju has now reached $232 million, including two equity rounds and convertible notes, both Billboard and PR Newswire reported. Akkaraju joined the firm in June 2024 and previously served as the CEO of Weta FX, a visual effects and computer animation company. According to LinkedIn, he remains on the Weta FX board, Billboard noted.

Music-Focused AI Development

The announcement follows the launch of Stable Audio 3.0 in June — a family of three new AI music models and one audio special effects model, as reported by Billboard. The majority of models in the Stable Audio 3.0 family are "open weight," a term used to describe models created via licensed training data that are publicly available, and can be downloaded and built on for further development, according to both sources.

Stability AI has been pursuing music-making models for several years. Its first foray into music creation was the open-source generative audio label, HarmonAI, which is designed to create accessible and playful music production tools "by musicians for musicians," Billboard reported. Then, in 2023, it launched the first iteration of Stable Audio, which could create up to 90-second songs for commercial projects. Since Stable Audio's inception, it has licensed music for its training set.

In late 2025, Stability AI announced a partnership with Universal Music Group and Warner Music Group to develop "next generation professional music creation tools," according to Billboard.

Leadership and Board Changes

Coatue Co-Founder Thomas Laffont has joined Stability AI's Board of Directors, PR Newswire reported. The board also includes James Cameron, Sean Parker, Dana Settle, and Prem Akkaraju, according to the same release.

"This unmatched group of investors is an affirmation of our vision where generative AI empowers every producer, musician, and storyteller," said Prem Akkaraju, CEO of Stability AI, as quoted by both Billboard and PR Newswire. "Stability is unique in the AI field because we are creative people making tools for creatives. Developing industry-defining technology means assembling a team of industry-defining titans, and that's what we have done here."

Laffont added, "While others are building generalized AI, Stability AI is building creative tools and doing it alongside the artists, studios, and rights holders whose work defines the field," as reported by PR Newswire.

Company Background

Stability AI sparked the generative AI revolution with the release of Stable Diffusion in August 2022, and its models have been downloaded more than 350 million times, according to PR Newswire. The company is recognized among Fortune's 50 AI Innovators and TIME's Most Influential Companies, with Stable Audio named to TIME's Best Inventions list, the release added.

WPP has been a strategic partner and investor throughout Stability AI's growth under new leadership, PR Newswire reported.