“Stability AI raised $100 million last year and has already spent a significant portion of those funds, according to the report. That means the startup’s upcoming fundraising round, which would balloon the company’s valuation to a lofty $4 billion, is on shaky grounds, with investors having second thoughts.

Sources familiar with the matter told Semafor that CEO Emad Mostaque’s leadership style has been unpredictable, swinging from micromanaging to letting researchers do what they want without oversight.”