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Fortune

Steve Mollman

Stability AI cofounder sold stake now worth over $500M for $100—after being duped, says lawsuit

Stability AI Emad Mostaque Lawsuit

(Credit: David Paul Morris—Bloomberg/Getty Images)

A Stability AI cofounder was perfectly positioned to strike it rich in the A.I. boom. He just didn’t know it.

Cyrus Hodes alleges that CEO Emad Mostaque deceived him into selling his 15% stake for $100—three months before the startup reached a $1 billion valuation. His stake would be worth over $500 million now.

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