Stability AI Appoints Prem Akkaraju as New CEO

British artificial intelligence startup, Stability AI, has announced the appointment of Prem Akkaraju as its new chief executive officer, according to sources. Akkaraju, who previously served as CEO of visual effects powerhouse Weta Digital, joins the company as part of a new wave of investors led by former Facebook President Sean Parker. This strategic move is intended to bolster Stability AI with significant financial support, potentially lowering the firm's valuation.

The investment consortium, which includes Parker, aims to rescue the financially struggling AI startup. However, this new funding round is expected to dilute the shares of existing investors who have already contributed over $100 million. Stability AI has not issued a formal comment on this development.

In May, Stability AI revealed it was negotiating with investors for a substantial equity investment to address its financial challenges. With Akkaraju at the helm, the company hopes to navigate these turbulent times and secure its position in the competitive AI industry.