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Note: Stable diffusion requires a lot of processing, so a GPU instance is recommended. If you want to use a CPU instance due to the high price of GPU instances, you should use instances with a higher CPU.
Please note that GPU's are not available in some zones and for some instance types.

Below are recommended VM configuration requirements:

GPU VM : Standard_NC4as_T4_v3

CPU VM: Standard_B4ms

For CPU, its the minimum specifications but more cpu is preferred. Instances with AMD GPU are not recommended.

Note: GPU instance will perform 10 times or more faster when processing request compared to CPU instance . Typical GPU instance will take few seconds to render the images compared to 7-10 minutes by CPU instance, hence GPU instances are preferred.

Stable Diffusion is open sourced State of the Art text to image AI model. It generates detailed images based on the given text prompts along with other capabilities such as inpainting, outpainting, and generating image-to-image translations. These capabilities along with its open-source nature makes it the best choice for creating AI Arts as compared to other closed source options available.

This VM comes with out of box setup for Stable Diffusion along with an InvokeAI Web Interface .
Having your own VM instead of using Stable Diffusion SaaS services will provide you :

Full control of Stable Diffusion capabilities & how it is utilized for your specific requirements

Have single VM & its Web UI & setup accessible to multiple users & teams making it more cost effective

Full ownership of the images & data generated

Ability to use any model of choice

Ability to customize Stable Diffusion as per your need

In addition, the Stable Diffusion InvokeAI Web interface provides following benefits on top of the Stable Diffusion capabilities

An intuitive web interface accessible from anywhere to exploit all Stable Diffusion capabilities using a browser

Original txt2img and img2img modes

Interactive Command Line Interface

Outpainting - to extends the original image and inpaints the created empty space

Inpainting

Color Sketch

Prompt Blending

Loopback, run img2img processing multiple time

One click install and run script

and lot more .

For more details on how to setup the VM, please refer to Azure Getting Started guide.

Full Web feature details available here

Disclaimer:Other trademarks and trade names may be used in this document to refer to either the entities claiming the marks and/or names or their products and are the property of their respective owners. We disclaim proprietary interest in the marks and names of others.

Credits:
https://github.com/invoke-ai/InvokeAI
https://github.com/CompVis/stable-diffusion.git
https://github.com/AbdBarho/stable-diffusion-webui-docker
https://github.com/AUTOMATIC1111/stable-diffusion-webui
https://github.com/Sygil-Dev/sygil-webui
https://invoke-ai.github.io/InvokeAI/other/CONTRIBUTORS/