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Public story · 2026-08-26 · high
Universal, Sony and Warner Music are now shareholders in Stability AI, the image generator they sued over training data eighteen months ago.
Why now: Stability closed the round on August 25.
Stability AI closed a $76 million Series B on August 25, backed by Universal Music Group, Sony Music Group and Warner Music Group.
All three labels sued Stability's Stable Diffusion over training data eighteen months ago. Now they own equity in the company they took to court.
Electronic Arts, AMD Ventures and Pacific Alliance Ventures joined the round too, pushing Stability's total funding to $232 million since founding.
Electronic Arts and AMD Ventures joining looks like a wager on image-generation tooling. Universal, Sony and Warner's money is a different bet.
Their lawsuits bought them a court date. This time, they bought a stake in the company that trains the models they sued over.
The funding announcement doesn't say whether the round affects the labels' infringement claims against Stability, or whether a licensing deal comes with the investment. It also doesn't specify how much of the company the three labels now control.
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