(Bloomberg) -- Emad Mostaque, the former chief executive officer of Stability AI, has given up his controlling shares in the beleaguered startup, according to corporate filings in the UK.
Mostaque, who co-founded the company in London in 2019, stepped down as CEO in March after staff departures, several lawsuits and managerial difficulties. The British entrepreneur remained a controlling shareholder, owning at least 75% of shares, according prior filings.
Stability AI, known for the image generating tool Stable Diffusion, became one of the buzziest AI startups after raising $101 million in 2022. In the months that followed, it didn’t raise a larger financing round despite mounting costs and management changes. In June, Stability named a new CEO, Prem Akkaraju, and brought in about $80 million in funds from investors, including early Facebook backer Sean Parker.
Mostaque and representatives for Stability AI didn’t immediately respond to requests for comment.
--With assistance from Rachel Metz.
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