Stability AI, the startup behind the image generation model Stable Diffusion, has closed a $76 million Series B round, bringing its total funding to $232 million. The company announced the round on Tuesday, noting that the capital comes largely from entertainment industry players rather than traditional venture investors. Participants include Universal Music Group, Sony Music Group, Warner Music Group, gaming giant Electronic Arts (EA), and investment firms AMD Ventures and Pacific Alliance Ventures. CEO Prem Akkaraju, who joined in 2024, framed the funding as validation of the company’s vision for generative AI empowering producers, musicians, and storytellers.

Stability says the money will go toward its “creative production” product suite and an expanded professional services arm. The company offers AI models for music, video, and image generation, and has spent the past year signing deals to embed those tools into entertainment workflows. It partnered with Universal Music and EA in October and with Warner Music in November of last year — deals that give the entertainment companies a role in co-developing Stability’s AI tools, not just licensing the output.

The funding also follows a mixed but largely favorable legal stretch. Stability prevailed in most of the UK copyright case brought by Getty Images, which had alleged the company used its images in training the image generation model. A judge ruled mostly in Stability’s favor, though a similar Getty case in the US is still ongoing. Separately, co-founder Cyrus Hodes sued in 2023, claiming he was misled into selling his stake by the other co-founder, Emad Mostaque.