Stability AI founder Emad Mostaque resigned from his positions as CEO and from the company’s Board of Directors to pursue decentralised AI initiatives. The Board of Directors has appointed Shan Shan Wong, Chief Operating Officer, and Christian Laforte, Chief Technology Officer, as the interim co-CEOs of Stability AI. 

“We are actively conducting a search for a permanent CEO to build upon Stability AI’s foundation and lead the company into its next phase of growth”, the company wrote in its blog post.

“As we search for a permanent CEO, I have full confidence that Shan Shan Wong and Christian Laforte, in their roles as interim co-CEOs, will adeptly steer the company forward in developing and commercializing industry-leading generative AI products,” said said Jim O’Shaughnessy, Chairman of the Board at Stability AI. 

“I am proud two years after bringing on our first developer to have led Stability to hundreds of millions of downloads and the best models across modalities. I believe strongly in Stability AI’s mission and feel the company is in capable hands. It is now time to ensure AI remains open and decentralised,” said Mostaque.

Since fall, executives and investors at Stability, including venture capital firms Coatue and Lightspeed Venture Partners, have been urging Mostaque to step down from his CEO role. 

Coatue has claimed that Mostaque’s poor leadership led to the departure of several top employees, placing the startup in a challenging financial position. Representatives from both Coatue and Lightspeed stepped down last year from Stability’s board, expressing disagreements with Mostaque’s management style. 

Several developers, who worked on the company’s most important product, Stable Diffusion,also recently resigned. Mostaque said that three of the five researchers have left the company. 

Stability was rapidly running low on cash, with a reported burn rate of about $8 million per month as of October 2023 according to Bloomberg. Attempts to raise additional funds at a valuation of $4 billion have largely met with limited success.