Stability AI Clarifies Acquisition Rumors and Introduces New Membership Model
In a recent update, Stability AI's chief, Emad Mostaque, cleared up speculation about the company seeking acquisition by stating, “We have never reached out to anyone to be acquired.” He emphasized that Jasper and Cohere are valued partners, and there have been no intentions to sell the business.
Business Stability and Financial Update
Addressing concerns about the company's stability, Mostaque mentioned that Stability AI is in a "relatively stable" state despite challenges. To sustain and improve the business, he revealed plans to introduce Stability AI Memberships. According to Mostaque, having a solid business model is crucial for any AI startup in today's market.
Recent financial figures show that the company generated $1.2 million in revenue in August, with a projected increase to $3 million this month. Mostaque, however, deleted the related post. To involve the community in decision-making, he conducted a poll on pricing for Stability AI Memberships. Interestingly, most users voted for $1, indicating a preference for free access to the core Stable models.
Community Engagement and Model Pricing
To address internal tensions about what to release and withhold, especially concerning APIs and consumer-focused products, Mostaque emphasized the company's commitment to delivering quality models. He acknowledged the challenge of balancing open-source contributions with building a sustainable business.
Mostaque clarified that a Stability AI Membership will be mandatory for commercial usage. For indie developers, he suggested a monthly fee of $100, applicable only if their revenue exceeds a certain threshold, similar to game engines. This move aims to strike a balance between accessibility and the company's sustainability.
In summary, Stability AI denies any acquisition outreach, emphasizes stability, and introduces a Membership model to ensure a viable business while engaging the community in pricing decisions.