May 16 (Reuters) - British artificial intelligence

startup Stability AI is in talks with a group of investors for a

large equity investment to inject funds into the cash-strapped

firm, a company spokesperson told Reuters on Thursday.

"Stability AI is engaged in an exclusivity period with a

world-renowned technology investor syndicate," the spokesperson

said.

The Information, which first reported the discussions, said

the investor group included Facebook's first president, Sean

Parker, and former CEO of visual effects company Weta Digital,

Prem Akkaraju.

Stability AI generated less than $5 million in revenue and

lost more than $30 million in the first quarter and currently

owes close to $100 million in outstanding bills to cloud

computing providers and others, the news website added.

The reported discussions come weeks after Stability AI laid

off some staff as part of a restructuring process and its

founder Emad Mostaque resigned as CEO.

The company, which has released AI models to generate audio

and video using text prompts, said last October that it had

nearly 200 employees around the world.

Stability AI counts among its investors venture capital firm

Lightspeed Venture Partners, actor Ashton Kutcher's Sound

Ventures, investment management firm Coatue and chipmaker Intel ( INTC )

, according to data firms Crunchbase and Pitchbook.

(Reporting by Kanjyik Ghosh and Surbhi Misra; Editing by Janane

Venkatraman

)