[rvz]

> There are plenty of recent examples where investors didn’t do enough due diligence in projects seeking huge valuations.

Exactly. This reminds me of Fast.co [0] who recently shutdown after attempting to raise more VC capital when it was revealed that they only made 600K and with a very high burn rate.

I don't see how it is so difficult for many commenters here to see that investors were mislead by the claims made by Stability.ai's IP, and now they're also are burning cash with questionable revenues being generated whilst begging to VCs again to raise at a higher valuation.

Some of these investors just run into hype and get burned repeatedly and never learn from FOMO.

[0] https://techcrunch.com/2022/04/05/fast-shuts-doors-after-slo...

[capableweb]

> that investors were mislead by the claims made by Stability.ai's IP

Which claims, precisely? Could you quote these claims that were made by Stability/Emad that makes it clear they were misleading the investors?

Because the article doesn't make those clear, these claims you talk about.

[rvz]

> Which claims, precisely?

Assuming you have read the article (and its links), there is a video podcast which he claimed that 'his team' originally developed Stable Diffusion under Stability.ai without mentioning the original researchers that created the model, until they raised money which one of the researchers clearly mentions this in the article:

> “Once he had this money he became a bit clearer who actually developed Stable Diffusion and that his company did not own the IP,” he says. “Now we come to the interesting thing — if you’re running a company that’s raising a Series A and pushing for a lot of money and your VC guys realise that you don’t own any IP, that probably makes it a bit tricky.”

So according to the leaked Telegram message, the claim of millions of people or '5M' users using Stable Diffusion (for free) and DreamStudio which that itself is a paid SaaS and now they are running out of money [0] doesn't add up or seem to be very promising to Stability either way.

Just other typical VC cash in and burn as much money as possible for inflated numbers.

[0] https://www.semafor.com/article/04/07/2023/stability-ai-is-o...

[emadm]

Most of the original researchers of latent diffusion are employed at Stability AI as is the co-lead of Stable Diffusion.

This leaked deck was before stable diffusion release and the number refers to other open source models built by stability ai employees.

Our model is not SaaS and has never been.

[jacquesm]

'A Series 'B' led by Stripe' -> I really wonder what the story is there. It can't be that easy to fool the Stripe founders.