Stability AI has closed a $76 million Series B strategic funding round with equity investments from Universal Music Group, Sony Music Group and Warner Music Group, the first time an AI company has received direct equity investment from all three major music companies in a single round.
The company announced the round on Tuesday, Aug. 25. Electronic Arts also participated. Stability AI said the capital will support development of its creative production product suite, deepen its applied research work, and expand its professional services arm.
Investor lineup#
- Universal Music Group
- Sony Music Group
- Warner Music Group
- Electronic Arts
- Sean Parker, Coatue, Greycroft, Kadmos Capital and Eric Schmidt
The entertainment firms and other investors participated for a second consecutive round under Stability AI’s new leadership.
Music model expansion#
The funding announcement follows the June launch of Stable Audio 3.0, a family of three new AI music models and one audio special effects model. Most models in the Stable Audio 3.0 family are open weight, meaning they are built with licensed training data, are publicly available, and can be downloaded and further developed.
Funding total and leadership#
Total funding for Stability AI since Prem Akkaraju became CEO has reached $232 million, including two equity rounds and convertible notes. Akkaraju joined the company in June 2024 after serving as CEO of Weta FX, a visual effects and computer animation company. He remains on the Weta FX board.
Music creation track record#
Stability AI has worked on music-making models for several years. Its first music project was HarmonAI, an open-source generative audio label designed to create accessible music production tools “by musicians for musicians.”
In 2023, the company launched the first version of Stable Audio, which could generate songs up to 90 seconds long for commercial projects. Since that launch, Stability AI has licensed music for its training data. The initial platform announcement included a licensing deal with music library Audio Sparx. In late 2025, Stability AI announced partnerships with Universal Music Group and Warner Music Group to develop what the UMG agreement described as “next generation professional music creation tools.”
“This unmatched group of investors is an affirmation of our vision where generative AI empowers every producer, musician, and storyteller,” Akkaraju said. “Stability is unique in the AI field because we are creative people making tools for creatives. Developing industry-defining technology means assembling a team of industry-defining titans, and that’s what we have done here. Our investors set us up for long-term success because they provide not only capital, but expertise, credibility, and direct connection to artists.”
