Stability AI Explores Sale as Investor Urges CEO to Resign (1)

Stability AI, the British artificial intelligence startup behind the Stable Diffusion image generator, has explored selling the company as management faces increased pressure from investors over its financial position.

The London-based firm has presented itself as an acquisition target in recent weeks, and held early-stage conversations with multiple companies, according to several people familiar with the matter, who asked not to be identified because the discussions were private. A deal is not imminent and the company could cut the process short without selling, they said.

The overtures underscore escalating tensions between Stability, once a venture capital darling, and some ...