Stability AI cofounder dumped his entire stake for a mere $100 just months before company hit a $1 billion valuation
The smashing success of ChatGPT helped ignite a stunning surge in AI-focused stocks this year, adding billions of dollars to the wealth of tech entrepreneurs like Nvidia CEO Jensen Huang.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.
"Specifically, in October 2021 and May 2022, Mostaque purchased from Hodes his entire 15% stake in Stability AI for only $100.00, having led Hodes to believe that the company he had helped build was essentially worthless," the lawsuit said. "But just a few months later, in August 2022, the company engaged in a seed funding round in which venture capital firms invested $101 million at a post-money valuation of"More recently, the company has been in the marketplace seeking funding at a valuation of $4 billion. At that valuation, the shares that Mostaque purchased from Hodes for a mere $100.00 would have a market value of over half a billion dollars ," according to the lawsuit.
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.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
British Open betting roundtable: Favorites, sleepers, and where to bet $100Get some sleep, set the alarm and put on the coffee, it's time for the British Open ... and that means it's time for another golf roundtable, featuring Yahoo Sports senior writer Jay Busbee and Yahoo Sports fantasy impresario Scott Pianowski. Topics today: Which players to chase and which to fade, the impact of weather on the tournament, and whether the British Open is the best major of them all. Let's begin!
Read more »
Tori Spelling defends staying in $100-per-night motel with kids amid mold infestationA paparazzo caught up with the “Beverly Hills, 90210” alum, 50, as she was leaving a Target store alone in California on Monday.
Read more »
Crypto Traders Flock to Unibot as Telegram Bot Tokens Near $100M Market Cap.telegram-based trading bots, such as TeamUnibot, are quickly attracting scores of crypto traders, allowing their users to punt on tokens just as easily as they would send messages to each other on the popular messaging app. By shauryamalwa.
Read more »
Bank of America $100 million payout: Who gets paid, how much, and when?Bank of America, the nation’s second-largest bank, is in the hot seat, accused of double-dipping on fees imposed on customers with insufficient funds in their account, withholding reward bonuses explicitly promised to credit card customers, and misappropriating sensitive personal information to open accounts without customer knowledge or authorization.
Read more »
Jim Caviezel faith-based thriller ‘Sound of Freedom’ crosses $100 million at box officeIt’s an impressive milestone for the low-budget, faith-based movie, especially in the height of summer blockbuster season. It also marks the first indie release in post-pandemic times to surpass $100 million at the domestic box office.
Read more »