Synopsis The parent company of Stable Diffusion, an AI tool for making digital images, is seeking to raise money at a valuation of about $4 billion, according to people familiar with the matter, who asked to not be identified because it isn’t public. ANI With artificial intelligence booming, one key player in the fast-growing space is talking to investors about raising more money after just reaching unicorn status in a funding round late last year. The parent company of Stable Diffusion , an AI tool for making digital images, is seeking to raise money at a valuation of about $4 billion, according to people familiar with the matter, who asked to not be identified because it isn’t public. It isn’t clear how much capital Stability AI Ltd. is seeking to raise in the potential round. A final decision hasn’t been made on whether to go ahead with the financing and the valuation could still change, the people added. London-based Stability, whose investors include Coatue Management and Lightspeed Venture Partners, last raised $101 million at a valuation of about $1 billion, Bloomberg News reported in October. Representatives for Stability AI didn’t provide a comment. That it’s going back to market so soon amid a tech downturn at a much richer valuation underscores how artificial intelligence in recent months has become the hottest topic in Silicon Valley, with the potential to upend entertainment, finance and even education. Microsoft Corp. , Bloomberg News reported in January, is investing $10 billion in OpenAI , the parent of ChatGPT , a leader in the technology, with tools that can generate uncannily detailed pictures, text and other media with a short prompt. LinkedIn co-founder Reid Hoffman said Friday that he was stepping down from the board of OpenAI, as his venture capital firm increasingly invests in other AI companies. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Other tech giants including Alphabet Inc. , Amazon. com Inc. and Meta Platforms Inc. are also competing to get out front in AI. Stable Diffusion competes with OpenAI’s Dall-E 2, another digital-image tool. The way Stable Diffusion works is that people type in a description of an image — say an astronaut riding a horse — and the program spits out a realistic or surrealistic picture. The company says it stands apart from competitors because its open-source software is available to the public. Its practical uses include designing video games to advertisements. Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here! Saturday, 04 Mar, 2023 Experience Your Economic Times Newspaper, The Digital Way! Read Complete Print Edition » Front Page Pure Politics Companies Brands & Companies More D-St Party: Indices Log Biggest Single-Day Gain in Four Months India’s stock benchmarks surged over 1. 5% on Friday — the biggest single-day gain in four months — as dovish commentary by one of the members of the US Federal Reserve's rate-setting panel and fresh investments in Adani Group stocks bolstered sentiment. Foxconn to Invest up to $1 B in New Bengaluru Plant The Hon Hai Technology Group (Foxconn), the biggest contract manufacturer in the world, will set up an electronics manufacturing and assembly unit on the outskirts of Bengaluru, where it is expected to invest up to $1 billion and make iPhones for Apple. Adani Stocks Jump for 4th Day in a Row Adani Group stocks rallied for the fourth consecutive day on Friday after the promoters raised ₹15,446 crore by selling stakes in four companies to US-based investment firm GQG Partners on Thursday. Read More News on Stable Diffusion stability ai openai chatgpt Stable Diffusion funding Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox. . . . more less ETPrime stories of the day Ed-tech Why the ed-tech sector needs to explore capital sources beyond PE, VC, and institutional investors 5 mins read Renewables After Adani stocks, Hindenburg may have crashed into India’s green hydrogen mission too 8 mins read Under the lens Pay up abroad, but play around in India. Are global firms taking Indian regulators for a ride? 14 mins read Subscribe to ETPrime.