Stable Diffusion is a deep learning model that generates high-quality images from text descriptions. It utilizes the Stable Diffusion XL model, which can produce photo-realistic images with a high degree of control over the output. The tool is easy to use and enables users to create AI art by simply inputting text prompts. It is GPU enabled for fast generation and ensures privacy by not collecting or storing personal information. Additionally, Stable Diffusion offers a Prompt Database feature, which allows users to search over 9 million prompts for inspiration.