WPP has announced a strategic partnership and investment in Stability AI, the London generative AI unicorn which was rescued in 2024.
WPP, the world’s largest advertising company and also based in London, says the deal will enhance its ability to deliver AI-driven content solutions to its clients across various entertainment channels.
Stability AI, a leader in the generative AI space for images, boasts Academy Award-winning filmmaker James Cameron and former Facebook president Sean Parker, who serves as executive chairman, among its board members.
The firm also appointed former Microsoft executive Hanno Basse as CTO in August.
Stability AI will be hoping that the partnership is the latest piece in a jigsaw bringing about an upturn in fortunes.
The company raised more than $100m in 2022, crowning it as a unicorn with a $1bn valuation. However, it struggled to raise further funds and it was revealed that it only generated $11m in sales in 2023, nowhere near enough to cover its cloud computing and other costs.
Founder and CEO Emad Mostaque left the company in March 2024, with Prem Akkaraju subsequently taking the reins as it appointed a new-look executive team and raised emergency funding.
That funding came from Greycroft, Coatue Management, Sound Ventures, Lightspeed Venture Partners and O’Shaughnessy Ventures, alongside tech executives including billionaire Napster founder Parker, former Google CEO Eric Schmidt, Robert Nelsen and Akkaraju, former CEO of visual effects company Weta Digital.
Reports suggested the investor group has reached a deal with cloud providers and other suppliers to drop $100m it owes and a potential $300m in future obligations.
Through this new partnership, WPP will leverage Stability AI’s open visual media models across image, video, 3D, and audio to craft brand narratives.
In turn, WPP’s real-world applications and market insights will help drive the continued development of Stability AI’s transformative technological and creator-centric approach.
WPP recently produced Super Bowl commercials featuring the likes of Beyoncé, Kate McKinnon, Michael Cera, Billy Crystal and Meg Ryan.
“We are thrilled to partner with Stability AI and harness their groundbreaking generative AI technology to drive innovation in marketing and advertising,” said Stephan Pretorius, WPP CTO.
“This collaboration is unique in its focus on the visual media industry, and we are inspired by the Stability AI team’s vision for the role of generative AI in entertainment and how it can augment the creative process.”
Akkaraju added: “WPP is the platinum standard in marketing and advertising, making this a pivotal partnership for Stability AI.
“Not only will this partnership accelerate the adoption we’re already seeing, but it’ll also enhance our ability to develop innovative products customised for creative professionals’ unique needs.
“We’ve spent years building the foundation for enterprise-grade creative tools, ensuring they are responsible, scalable, and ready for real-world applications. Now is the time to bring our models and workflows to even more brands globally.”