Emad Mostaque, founder and CEO of Stability AI, has quit his job as CEO and from the board of the unicorn startup, the company announced Friday night. This is the second big change at a hot AI startup this week.
Some of the investors in Stability AI are Lightspeed Venture Partners and Coatue Management. The company said in a blog post that it doesn’t have a permanent CEO yet but has named its COO Shan Shan Wong and CTO Christian Laforte as temporary co-CEOs.
Stability AI has lost more than six important employees in the last few months, and they said Mostaque is leaving to work on autonomous AI. Some posts on X by Mostaque said that adding more “centralized AI” couldn’t possibly be better. He was talking about how top AI companies like OpenAI and Anthropic are owned.
He also said that because he owned the most powerful shares, it was his choice to step down from the top position. As AI gets bigger and more important, we should have more open and spread out government. Even though it’s tough, he said, “I think we can solve it.” “The fact that AI has a lot of power is bad for everyone.” I chose to step down so that this could be fixed at Stability and other places.
Additionally, Mostaque’s departure from Stability AI, a startup known for its popular image creation tool Stable Diffusion, comes at a time when the startup is still having a hard time. According to Bloomberg, the startup was spending about $8 million a month and had failed to raise new funding at a $4 billion valuation.
It looks like Mostaque wasn’t putting a high priority on income growth about a year ago. His amusement at the “strange focus on revenue” of generative AI companies was written about on X last year. He said, “the technology is useful but far from vaguely mature as new breakthroughs happen almost daily.” He gave many examples, such as MagicLeap, which spent billions of dollars before it started making money.
“The benefits of doing proper generative AI research are more obvious and come to market faster than almost anything we’ve seen.” It will create a lot more economic value than, say, self-driving cars, which have cost $100 billion to develop but haven’t brought in any money yet, he wrote.
His words on Reddit last month showed that the focus had changed. It’s going well and we’re already ahead of schedule this year. Our goal is to have positive cash flow this year, and I think we can get there as soon as possible, he wrote.
This is a very big business, and all regulated and cutting edge industries will need open models. That’s why we’re one of the few businesses that lets you see data, code, information about training runs, and more. As businesses start to use it more in the next year or so, custom models, coaching, and other services will be in high demand. This is a great way to make money.
The announcement by Stability AI caps off an amazing week for the AI business. The startup Inflection AI, which had raised about $1.5 billion, said on Monday that two of its co-founders and several other employees had joined Microsoft. Microsoft led the most recent funding round for the company.
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