Sources say artificial intelligence startup Stability AI is looking for a sale and has a strained relationship with investors.

On the evening of November 29, Beijing time, several people familiar with the matter said that British artificial intelligence start-up Stability AI was already looking to sell the company as management faced increasing pressure from investors on its financial position.

Stability AI has been touting itself as an acquisition target in recent weeks and held early talks with a number of companies, according to these people familiar with the matter. They also say a deal may not be reached in the short term.

But the decision is a sign of rising tensions between Stability AI, a former venture capital darling, and some of its biggest investors.

Coatue Management called for CEO Emad Mostaque to resign in a letter to management last month, according to people familiar with the matter. Just a year ago, Coatue Management led Stability AI, valuing it at $1 billion.

In response, a spokesman for Stability AI said in an emailed statement: "although several companies have expressed interest in acquiring Stability AI, we do not intend to sell the company. Instead, we focus on releasing leading models, such as recent video generation products."

Coatue Management blamed Mostaque's leadership for leaving several of the company's senior managers and worsening Stability AI's financial situation, according to people familiar with the matter.

But a spokesman for Stability AI said: "our leadership and management of CEO have played an important role in the success of the company. Recent investments have also highlighted investors' confidence in us in this fast-growing market."

A representative of the Coatue Management declined to comment.