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UK advertising group WPP has invested in a generative AI start-up that last year secured funding from tech entrepreneurs including former Google boss Eric Schmidt, as part of a strategic tie-up that will give it access to a range of image generation tools.
WPP, which is also increasing its investment in AI to about £300mn a year, said it would agree a commercial partnership to use Stability AI’s models across images, video and audio. The two groups will establish a joint R&D pipeline, and work together on projects.
Stability AI has created an AI image-generation tool along the lines of those made by Google and OpenAI, as well as providing similar services in video and audio.
The involvement of WPP will boost confidence in Stability AI, which has had issues in recent years such as the exit of key staff, including founder and chief executive Emad Mostaque, high costs and legal action over intellectual property rights.
Media company Getty Images is suing Stability AI in the UK over claims its library of images was used to train the start-up’s models without its consent.
Last summer, Stability AI raised about $80mn in funding from a group of investors including Coatue Management, Lightspeed Venture Partners and Schmidt. Former Facebook president Sean Parker became executive chair of its board. Filmmaker James Cameron joined the board in September.
The funding round did not put a valuation on the company but it previously raised $101mn at a $1bn valuation in 2022. WPP’s investment was made as part of an extension of the most recent funding round, a person close to the deal said, but the amount was not disclosed.
WPP is in an AI investment race with other large advertising companies. The technology can be used to produce marketing campaigns much more quickly and cheaply.
WPP said on Wednesday that the deal would “enhance WPP’s ability to deliver cutting-edge, AI-driven content” to clients across entertainment channels such as streaming platforms.
Mark Read, chief executive of the group, said: “The advertising landscape is evolving quickly, and AI is at the heart of that evolution.”
Stability AI’s models will be integrated within WPP’s AI-driven operating system, WPP Open, to help create ideas and test concepts.
Prem Akkaraju, chief executive of Stability AI, called it “a pivotal partnership for Stability AI”. He added: “We’ve spent years building the foundation for enterprise-grade creative tools . . . Now is the time to bring our models and workflows to even more brands globally.”
