SA国际传媒

This has been a tough week on the layoffs front for AI startups.

Troubled artificial intelligence startup is laying off 10% 鈥� estimated to be about 20 people 鈥� of its workforce, per a by .

The layoffs are just the latest hit for the artificial intelligence-driven visual art startup.

In 2022, Stability AI locked up a $101 million raise led by , and . The company did not release a valuation at the time, but the new cash infusion valued the company at around $1 billion.

However, last spring Stability AI鈥檚 founder made exaggerated statements about both his own background and his generative AI startup. At the time, some AI researchers the startup鈥檚 claims that it created the image generator , an open-source project developed by researchers.

It also was the London-based startup was looking to raise an additional $1 billion of capital at a multibillion-dollar valuation, but talks had stalled.

Then late last month, reports surfaced Mostaque left the company after an investor revolt.

The company said in an internal memo it was trying to 鈥渞ight-size鈥� the business after a period of unsustainable growth, per the report.

Layoffs hit AI

Stability AI was not the first AI startup this week to announce layoffs.

, a developer of a generative AI presentation tool launched a couple of years ago, cut about 20% of its nearly 60 people.

The cuts were first reported by and then confirmed by the company.

The company has raised more than $75 million across a few rounds. Its latest, a Series B, was led by .

Related reading:

• Eye On AI: Microsoft鈥檚 G42 Deal Could Bring More AI Money, Tech To UAE
• Stability AI鈥檚 Founder Made Misleading Claims 鈥� Report

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