The Painful Launch of Stable Diffusion 3

The video discusses the turbulent journey of Stability AI, including financial troubles, internal upheaval, and the release of Stable Diffusion 3 (SD3). SD3’s launch faced criticism for subpar image generation, controversial licensing terms, and internal issues with training and model selection, leading to community backlash and resignations within the company.

The video discusses the turbulent journey of Stability AI and the launch of Stable Diffusion 3 (SD3). Initially hailed as a leader in open-source AI, Stability AI faced financial troubles and internal upheaval, with key researchers and the founder stepping down. Emad, the CEO, resigned amidst rumors of financial instability and mismanagement, leading to negative press coverage. The company reportedly struggled to pay its bills, leading to layoffs and restructuring.

Following the announcement of SD3, excitement waned as the released models fell short of expectations. The SD3 medium model, touted as state-of-the-art, faced criticism for generating subpar images, especially in anatomical details. The licensing terms of SD3 also sparked controversy, with confusion around commercial use limitations and subscriptions. These terms raised concerns among users and led to a backlash within the AI community.

Amidst these challenges, the video sheds light on the resignation of a developer closely associated with Stability AI, revealing internal issues with the training and model selection for SD3. The company’s focus was questioned, with developers seeking to create models accessible to consumer GPUs rather than catering solely to paid APIs. The video encourages support for the departing developer’s new project,, aimed at developing consumer-friendly AI models.

The video concludes with news of Stability AI appointing a new CEO and receiving support from an investor group. Despite the setbacks, the company is urged to prioritize its community and regain stability in its operations. Additionally, viewers are introduced to Nvidia Nim, an API offering accelerated generative AI models with advanced features for deployment and scalability. Finally, the video promotes the creator’s newsletter for AI research breakdowns and acknowledges supporters through Patreon and YouTube.