Stability AI Is No Longer Controlled by Former CEO Mostaque

Emad Mostaque, the former chief executive officer of Stability AI, has given up his controlling shares in the beleaguered startup, according to corporate filings in the UK.

Mostaque, who co-founded the company in London in 2019, stepped down as CEO in March after staff departures, several lawsuits and managerial difficulties. The British entrepreneur remained a controlling shareholder, owning at least 75% of shares, according prior filings.

Stability AI, known for the image generating tool Stable Diffusion, became one of the buzziest AI startups after raising $101 million in 2022. In the months that followed, it didn’t raise a larger financing round despite mounting ...