Stable Diffusion is an open-source generative AI model designed for creating images, videos, and animations from text prompts. Developed by Ludwig Maximilian University of Munich researchers and managed by Stability AI, it was publicly released in August 2022. The model uses a latent diffusion approach, which compresses images into a lower-dimensional latent space using a variational autoencoder (VAE), leading to faster and more energy-efficient generation compared to traditional diffusion models. However, it faces limitations in accurately depicting small human features, such as hands and fingers, due to insufficient training data. Stable Diffusion is available for free for research and limited commercial use by organizations making under $1 million annually. Higher-earning entities can access it through subscriptions. Following the release of version 3.5 in October 2024, Stability AI encouraged distribution and monetization of content created with the model, alongside ongoing challenges in generating consistent outputs.
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Exploring Stable Diffusion: Insights into Generative AI and Deep Learning

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