How Stability AI’s founder tanked his billion-dollar startup

It was Stability's armada of GPUs, the wildly powerful and equally expensive chips undergirding AI, that were so taxing the company's finances. Hosted by AWS, they had long been one of Mostaque's bragging points; he often touted them as one of the world's 10 largest supercomputers. They were responsible for helping Stability's researchers build and maintain one of the top AI image generators, as well as break important new ground on generative audio, video and 3D models. Undeniably, Stability has continued to ship a lot of models," said one former employee. They may not have profited off of it, but the broader ecosystem benefitted in a huge, huge way."

But the costs associated with so much compute were now threatening to sink the company. According to an internal October financial forecast seen by Forbes, Stability was on track to spend $99 million on compute in 2023. It noted as well that Stability was underpaying AWS bills for July (by $1M)" and not planning to pay AWS at the end of October for August usage ($7M)." Then there were the September and October bills, plus $1 million owed to Google Cloud and $600,000 to GPU cloud data center CoreWeave. (Amazon, Google and CoreWeave declined to comment.)

Kenrick Cai and Iain Martin

As a Dutch person, I can smell a popping bubble from a mile away, even if tulipmania is most likely anti-Dutch British propaganda.

In all seriousness, there's definitely signs that the insane energy and compute costs of artificial image and video generation in particular are rising at such an insane pace it's simply unsustainable for the popularity of these tools to just keep rising. Eventually someone's going to have to pay, and I wonder just how much regular people are willing to pay for this kind of stuff.