Jasper, an AI startup, purchases image generator Clipdrop from Stability AI.
Jasper, a U.S. writing assistant startup, has announced its acquisition of Clipdrop, an AI-powered photo application developed by Stability AI. The move comes as Jasper looks to broaden its services for corporate clients.
The deal, the terms of which were not disclosed, marks a shift in strategy for London-based Stability AI, known for its image generation AI model, which bought Clipdrop less than a year ago.
Stability AI CEO Emad Mostaque said in an emailed statement that the company can continue to focus on developing “cutting-edge open models.”
Founded in July 2020, Paris-based Clipdrop had raised seed investment from Air Street Capital before being sold to Stability AI in March 2023 for an undisclosed amount. At the time, Clipdrop said it had more than 15 million users.
Jasper and Stability AI are popular among generative AI users and investors. The area is populated by OpenAI’s ChatGPT.
Both companies have raised more than $100 million from venture capitalists at a $1 billion valuation and are now trying to prove they can sustain growth in a rapidly changing competition with other startups and big tech companies.
Known for its AI-powered writing tool, Jasper has experienced layoffs and CEO changes in an attempt to focus on serving businesses instead of consumers over the past year. It plans to offer Clipdrop through its platform, but will keep it available as a standalone product.
