Stability AI · Stability AI Model License · View original document ↗

Prohibition on Competing Foundational Models

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Document Record

What it is

The agreement prohibits using Core Models, Derivative Works, or outputs generated from them to create new model architectures that compete with Stability AI's Core Models, while permitting the creation of fine-tunes, LoRAs, hypernetworks, and retrains.

This analysis describes what Stability AI's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

This provision restricts a specific category of AI development activity (creation of new foundational model architectures) for all Community License users, including researchers and commercial developers, and may affect AI research workflows and downstream product development pipelines.

Interpretive note: The document does not provide a precise technical or legal definition of 'new model architecture,' creating interpretive ambiguity for organizations engaged in large-scale model development or research.

Consumer impact (what this means for users)

Under the Community License, users may create fine-tunes, LoRAs, hypernetworks, and retrains, but the agreement states they may not use Core Models, their outputs, or Derivative Works to create new foundational model architectures. This restriction applies to both non-commercial and commercial users operating under the Community License.

Cross-platform context

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▸ View Original Clause Language DOCUMENT RECORD
"
The Community License places restrictions on creating competing 'foundational models' using the Core Models, Derivative Works and their outputs. You can't use a Core Model, or its outputs, to create a 'new' model architecture.

Excerpt from Stability AI's Model License

ConductAtlas Analysis

Institutional analysis (regulatory & governance intelligence)

(1) REGULATORY LANDSCAPE: This provision engages intellectual property law, specifically copyright and sui generis database rights to the extent they apply to AI model weights and architectures. The EU AI Act may interact with this provision in contexts where foundational model development is subject to general-purpose AI model obligations. No specific data protection regulations are directly implicated. (2) GOVERNANCE EXPOSURE: Medium. Organizations conducting AI research or model development using Stability AI's Core Models must evaluate whether their activities constitute creation of a new foundational model architecture under the agreement's definitions. The document distinguishes fine-tunes from foundational models but does not provide a precise technical definition of 'new model architecture,' creating interpretive uncertainty. (3) JURISDICTION FLAGS: Enforceability of restrictions on outputs may vary by jurisdiction. In some EU member states and the UK, the extent to which a licensor can contractually restrict use of model outputs (as opposed to the model itself) may engage copyright and database right frameworks. EU AI Act obligations for general-purpose AI models may interact with this restriction for organizations developing large-scale derivative models. (4) CONTRACT AND VENDOR IMPLICATIONS: B2B contracts involving sublicensing or redistribution of models derived from Stability AI Core Models should include representations confirming that downstream development does not constitute foundational model creation. Research agreements with academic or commercial partners using these models should be reviewed against this restriction. (5) COMPLIANCE CONSIDERATIONS: Legal teams should establish clear internal definitions distinguishing permitted fine-tuning activities from prohibited foundational model creation, and document the technical basis for that classification. Organizations engaged in large-scale model research should obtain written clarification from Stability AI if their development activities approach the boundary of this restriction.

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Applicable agencies

  • FTC
    The FTC's authority over unfair methods of competition and deceptive practices may be relevant in the context of IP restrictions on AI model development and competition in the generative AI market.
    File a complaint →

Provision details

Document information
Document
Stability AI Model License
Entity
Stability AI
Document last updated
May 12, 2026
Tracking information
First tracked
July 9, 2026
Last verified
July 9, 2026
Record ID
CA-P-014442
Document ID
CA-D-00831
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
3f23703d47ad98abeeed428972430d286fbe8fc49cfd479d8d879aa06406ae6f
Analysis generated
July 9, 2026 05:34 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Stability AI
Document: Stability AI Model License
Record ID: CA-P-014442
Captured: 2026-07-09 05:34:48 UTC
SHA-256: 3f23703d47ad98ab…
URL: https://conductatlas.com/platform/stability-ai/stability-ai-model-license/provision/CA-P-014442/prohibition-on-competing-foundational-models/
Accessed: July 24, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

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Frequently Asked Questions

What does Stability AI's Prohibition on Competing Foundational Models clause do?

This provision restricts a specific category of AI development activity (creation of new foundational model architectures) for all Community License users, including researchers and commercial developers, and may affect AI research workflows and downstream product development pipelines.

How does this clause affect you?

Under the Community License, users may create fine-tunes, LoRAs, hypernetworks, and retrains, but the agreement states they may not use Core Models, their outputs, or Derivative Works to create new foundational model architectures. This restriction applies to both non-commercial and commercial users operating under the Community License.

Is ConductAtlas affiliated with Stability AI?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Stability AI.