Meta to pay $140 million to use Black Forest Labs AI for images

Meta to pay $140 million to use Black Forest Labs AI for images

Meta Platforms Inc. has signed a multi-year contract worth more than $100 million to utilize technology from AI image startup Black Forest Labs, further expanding its artificial intelligence offerings. The deal includes a commitment of $35 million in the first year and $105 million in the second year .

This investment is part of Meta's broader strategy to enhance its AI capabilities, following previous moves such as partnering with Midjourney for its "aesthetic technology" and poaching top talent from competitors . The partnership with Black Forest Labs, founded by several computer scientists involved in creating AI image generator Stable Diffusion, will provide Meta with access to cutting-edge image and video generation technology .

Black Forest Labs, which has been generating $96.3 million in annual recurring revenue as of August, has also secured partnerships with Adobe Inc., Canva Inc., and Snap Inc., representing approximately $300 million in total contract value, including the Meta deal . The startup projects its annual recurring revenue to reach $300 million in fiscal 2026 .

The deal underscores the growing importance of AI in the tech industry, with companies like Meta investing heavily to stay competitive. Black Forest Labs, with its secretive yet prominent presence in the market, has quickly become a significant player in the AI image and video generation space .

References:
https://www.bloomberg.com/news/articles/2025-09-09/meta-to-pay-140-million-to-use-black-forest-labs-ai-for-images