The business model explained in the article (do compute-intensive stuff and give it away for free) largely worked for Google, Facebook, and the big platform companies. Stability tried to do the same thing - building amazing tech as a loss leader - without a moat that gets people paying.
Combine that with a supplier that has huge market power (Nvidia) and you have a recipe for an entirely predictable bankruptcy.
Having good taste is a hell of a moat, which is how fashion designers build multi-billion-dollar brands (I am not talking about the old "houses" - those are about the logo, but new brands are different), as well as chefs and visual artists. It's just a very different kind of moat than the one we expect as engineers.
Midjourney's initial success was a combination of elusive marketing and a unique style. They focused on building a large community and took advantage of constant feedback.
> (I am not talking about the old "houses" - those are about the logo, but new brands are different)
Have you looked at Hermès' business model? It has never been about their logo. They'll often hide it from their product.