Meta has committed $140 million to partner with Black Forest Labs, acknowledging its internal AI image generation capabilities have fallen short against specialized contenders. The deal spans two years with payments of $35 million in the first year and $105 million in the second. Meanwhile, Black Forest Labs, founded by creators of Stable Diffusion, is projected to grow its annual recurring revenue from $96.3 million to $300 million by 2026, highlighting the competitive landscape in AI.