The cofounder of Stability AI dumped his stake for $100 just months before the company hit a $1 billion valuation. The firm has sought a $4 billion valuation more recently, and Hodes' shares would have been worth over $500 million on that basis, he said in a lawsuit. The cofounder of artificial-intelligence startup Stability AI took a massive notional loss — when he dumped his 15% stake for a mere $100 just months before the company hit a $1 billion valuation. The suit is "without merit" and Stability AI will "aggressively defend our position," the company said in emailed comments. Stability AI, which is known for developing the open-source, text-to-image generator Stable Diffusion, was founded in 2020 and quickly rose to fame for its text-to-image product.

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Persons: Cyrus Hodes, Hodes, ChatGPT, Jensen Huang, Mohammad Emad Mostaque, Mostaque, It's Organizations: Service, Nvidia, Stability, Hodes Locations: Wall, Silicon, London