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The agreement states that commercial use of the Core Models is free for individuals and organizations with annual revenue under USD $1 million, and requires a paid Enterprise License for those exceeding that threshold, with the threshold calculated on total annual revenue regardless of its source.
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
This provision establishes that the revenue threshold applies to total organizational revenue rather than revenue specifically derived from use of Stability AI's models, which may require organizations with diversified revenue streams to obtain an Enterprise License even if their AI-related revenue is minimal.
Interpretive note: The document does not specify whether the $1 million threshold applies at the individual entity level, subsidiary level, or consolidated group level, which creates interpretive ambiguity for corporate structures.
The agreement requires organizations whose total annual revenue exceeds USD $1 million to obtain a paid Enterprise License for commercial use of the Core Models, regardless of whether that revenue is generated from AI-related activities. Users and organizations under the $1 million threshold may use and distribute the Core Models and Derivative Works at no cost under the Community License.
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"Use of the Core Models (including Stable Diffusion 3 2B) is free for everyone, unless you're using the Core Models for a commercial purpose and you or your organization generate over USD $1M (or local currency equivalent) of annual revenue, regardless of the source of that revenue.Excerpt from Stability AI's Model License
(1) REGULATORY LANDSCAPE: This provision does not directly implicate data protection regulations but engages standard commercial licensing frameworks and, where organizations deploy models in regulated sectors, may interact with sector-specific AI governance requirements. The FTC's unfair or deceptive practices framework may be relevant if the threshold definition is applied inconsistently. EU and UK competition regulators may evaluate revenue-based licensing thresholds in the context of market access for AI tools. (2) GOVERNANCE EXPOSURE: Medium. The provision's application of the revenue threshold to total organizational revenue regardless of source creates monitoring and compliance obligations for organizations near the $1 million boundary. Organizations must track total entity revenue continuously rather than only AI-specific revenue. (3) JURISDICTION FLAGS: The document states the threshold applies in local currency equivalent, which creates cross-border calculation complexity for multinational organizations. EU and UK organizations should confirm how group-level versus entity-level revenue is assessed under the agreement, as the document does not specify this. (4) CONTRACT AND VENDOR IMPLICATIONS: Procurement teams embedding Stability AI models in products or services should assess whether the contracting entity's total revenue exceeds the threshold. Vendor agreements that sublicense or distribute Core Model-based outputs may need to include representations about the downstream party's revenue status. (5) COMPLIANCE CONSIDERATIONS: Organizations should establish internal revenue monitoring processes tied to the $1 million threshold and document the basis for their license tier classification. Legal teams should evaluate whether the threshold applies at the entity, subsidiary, or group level, as the document does not specify this.
This provision establishes that the revenue threshold applies to total organizational revenue rather than revenue specifically derived from use of Stability AI's models, which may require organizations with diversified revenue streams to obtain an Enterprise License even if their AI-related revenue is minimal.
The agreement requires organizations whose total annual revenue exceeds USD $1 million to obtain a paid Enterprise License for commercial use of the Core Models, regardless of whether that revenue is generated from AI-related activities. Users and organizations under the $1 million threshold may use and distribute the Core Models and Derivative Works at no cost under the Community License.
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