Intel is investing heavily in Stability AI, a leading developer of open-source AI, providing the startup with an AI supercomputer powered by high-end Xeon processors and more than 4,000 Gaudi2 AI processors. Stability AI, mainly known for its Stable Diffusion image generation software, recently raised nearly $50 million in funding, with Intel playing a significant role. The investment comes after a difficult period for Stability AI, marked by executive departures and internal disagreements. Despite these challenges, the company has refocused on research and development, reported a tenfold increase in revenue over the past year, and anticipates further growth with new product releases. The company recently released generative AI for 3D and text-to-audio, as well as a few LLMs.