Major Labels Backing AI
Stability AI secures $76 million Series B funding backed by major music labels.
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Key Points
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Stability AI secured equity investments from Universal Music Group, Sony Music Group, and Warner Music Group — the three major labels — in its Series B, reportedly the first time all three have invested directly in a single AI company.
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The London-founded startup has closed its London office and pivoted to the US, establishing a Los Angeles presence.
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Warner Music Group and Electronic Arts have agreed to collaborate by helping to build new AI models that leverage their catalogs and IP.
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Prem Akkaraju became CEO in 2024, replacing founder Emad Mostaque amid reports of internal strife and employee departures.
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Stable Audio 3.0 is a licensed-data music model family, accessible in workflows via a DAW plugin or through StableAudio.com.
Stability AI raised $76 million in Series B funding, bringing total funding to $232 million since CEO Prem Akkaraju took over in 2024. Billboard reported that Universal Music Group, Sony Music Group, and Warner Music Group all invested—reportedly the first time all three major labels backed a single AI company. The round also includes Electronic Arts, AMD Ventures, and returning investors like Coatue and Sean Parker.
Stability AI plans to use the funding to accelerate product development for creative professionals in music, gaming, and entertainment. TechCrunch noted the company shut its London office and is now focused on the US, with operations in Los Angeles. The startup has released Stable Audio 3.0, a music model that uses licensed data from its label partners.
Music Labels Bet Big on AI Audio Tools
All three major record labels—Universal, Sony, and Warner—made direct equity investments in Stability AI for the first time. Whale's Book described this as a historic moment, showing the music industry's shift toward AI partnerships. The labels agreed to help build new models using their catalogs and intellectual property.
This deal signals confidence in Stability AI's Stable Audio 3.0, which lets music producers access AI tools through digital audio workstation plugins or via StableAudio.com. The licensed-data approach protects label rights while enabling new creative workflows for professionals.
Gaming Giants Join Entertainment AI Push
Electronic Arts invested in the round and committed to collaborate with Stability AI. Crypto Briefing reported that EA will help develop new models leveraging its game catalogs and intellectual property, extending AI adoption beyond music into interactive entertainment.
CEO Overhaul Marks Strategic Pivot to Professionals
Prem Akkaraju became CEO in 2024, replacing founder Emad Mostaque after internal turmoil and employee departures. Yahoo Finance noted the leadership change coincided with a shift toward licensed data and professional tools. Returning investors like venture firms and tech luminaries such as Eric Schmidt and James Cameron show sustained confidence in the new direction.
From London Startup to US Entertainment Hub
Stability AI closed its London office and relocated its main operations to Los Angeles. TechCrunch reported this geographic shift reflects the company's focus on the US market and entertainment industry partnerships. The LA base positions Stability AI closer to film, music, and gaming studios it now serves.
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