Cyrus Hodes is a co-founder of Stability AI. The London generative AI company was founded in 2019 by Hodes and Emad Mostaque. Mostaque was CEO until he resigned in March 2024.
In July 2023 Hodes filed a lawsuit against Mostaque and Stability AI. He alleged fraud, misrepresentation and breach of fiduciary duty. His claim is that Mostaque persuaded him the company was close to worthless and bought his 15% stake for $100, in two transactions in October 2021 and May 2022.
About three months after the second transaction, Stability AI raised $101m at a $1bn valuation. The complaint said the stake would be worth more than $150m at the valuation then being discussed. Stability AI has said the lawsuit is without merit.
The company's public breakthrough was the August 2022 release of Stable Diffusion, an open image generation model. Prem Akkaraju became CEO in June 2024.