Black Forest Labs, a German AI startup, is in talks to raise US$200 million to US$300 million in new funding, which could value the company at about US$4 billion.

The discussions are not public, and the final size and valuation of the round may change.

Founded in 2024 by computer scientists who helped create Stable Diffusion, the company is one of the few European startups building its own AI models.

Black Forest Labs has contracts with major US tech firms, including a deal with Meta reportedly worth over US$100 million for its AI image-generation tech.

Meta recently launched a feature called Vibes in its Meta AI app that uses the company’s tech to generate videos. It has also partnered with Adobe for AI image-generation features.

Andreessen Horowitz backed its US$31 million seed round in August 2024.

🔗 Source: Bloomberg