Stable Diffusion is an open-source image generation model developed by Stability AI. It enables users to generate images from text prompts such as a description of an object, background, or style. The model is powered by Baseten and is governed by the CreativeML Open RAIL M License. This allows users to generate images with just a descriptive phrase, such as 'A lion wearing a cowboy hat'. The model then generates the corresponding image, with the example output provided in the text including a cyberpunk portrait, a lion wearing a cowboy hat, an NFL player scoring a touchdown, and a digital art of a tranquil library on a spaceship. This tool provides a convenient and powerful way for users to create images from text prompts.