Stability AI Closes $500M Series D Led by Google and Amazon at a $7B Valuation

Stability AI has closed a $500 million Series D led jointly by Google and Amazon, with participation from existing investor Coatue, at a $7 billion post-money valuation, the company confirmed on Tuesday. The round more than doubles the company's $3 billion mark from its Series C two years ago.

Use of Funds

Stability's CEO Prem Akkaraju said in an interview that the capital will be deployed across three priorities: a new multi-modal video model intended to compete with OpenAI's Sora 2 and Google's Veo 3, a self-hosted enterprise tier that runs entirely inside a customer's cloud account, and a major expansion of the company's open-weights research team. The company also plans to hire 200 engineers across London, San Francisco, and Tel Aviv by the end of 2026.

「Two years ago, we were a single-product company with a research team. We're now a multi-product company with research, enterprise, and a consumer channel,」 Akkaraju said. 「This round lets us go after all three at once.」

Strategic Stakes for Google and Amazon

Google's lead participation is a hedge against its dependence on Anthropic and OpenAI for foundation-model supply. Amazon's lead participation extends a relationship that already includes Stability as one of the foundation models offered in Amazon Bedrock. Both companies get observer seats on Stability's board.

What It Means for the Field

Stability's valuation still trails the rumored $300 billion figure for OpenAI and the $180 billion figure for Anthropic, but it is now well ahead of Mistral, Cohere, and the rest of the open-weights tier. The round also signals that the open-weights research model — which Stability effectively invented with the original Stable Diffusion release — is back in favor with strategic capital after a quiet 2024-2025.

The company declined to disclose specific revenue figures, but said enterprise license sales have grown four-fold year over year.