Stability AI layoffs: Stability AI, an artificial intelligence startup, is set to undergo a restructuring process that will include staff layoffs, as outlined in an internal memo obtained by Reuters on Thursday, confirmed by a knowledgeable source. The move comes weeks after founder Emad Mostaque resigned from the position of CEO.

Following Mostaque's departure from the CEO role and the company's board in March, signalling a major transition for the AI startup, that produces the Stable Diffusion image-generation tool. The company faces robust competition from entities such as OpenAI, the developer of ChatGPT, and the French startup Mistral.

Interim co-CEOs Shan Shan Wong and Christian Laforte expressed in the internal memo that these decisions were made after careful consideration, aimed at streamlining aspects of the business to sharpen focus, thereby establishing a more sustainable trajectory.

Stability AI, known for its AI models that generate audio and video from text prompts, disclosed last October that it employed nearly 200 individuals globally. The affected employees will be notified individually, with the company conducting a scheduled town hall meeting on Thursday.

While the exact number of staff layoffs was not disclosed, Stability AI boasts notable investors, including venture capital firm Lightspeed Venture Partners, Ashton Kutcher's Sound Ventures, investment management firm Coatue, and chipmaker Intel, according to data from Crunchbase and Pitchbook.

The British firm recently introduced its Stable Diffusion 3 model to developers through an application programming interface, further underlining its commitment to advancing AI technologies.

(With Reuters inputs)