AI Music Soars
AI Music Generator Suno Raises $400 Million, Valuation Doubles to $5.4 Billion
Anonymous
Suno, the AI music-generation startup, has raised about $400 million in a Bond Capital–led Series D valuing the company at $5.4 billion, more than doubling its prior $2.45 billion valuation from a $250 million round. Investors cite Suno’s rapid user growth—topping roughly 100 million users and about 2 million paid subscribers—along with rising business performance, including substantial annual recurring revenue and accelerating engagement. Just as important for the re-rating, Suno’s legal risk from major record labels has eased: Warner and Universal have settled and moved into licensing or partnership arrangements, reducing the odds of catastrophic outcomes. The platform continues to generate music from text prompts and is expanding its product footprint, including acquiring live-music discovery service Songkick. Backers say the new capital will support hiring, product development, and broader rollout, even as Suno has continued to face scrutiny from remaining label disputes. Overall, the funding reflects a shift from treating AI music as an existential legal threat to pricing Suno as a durable, industry-integrated business.
Key Points
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Suno CEO Mikey Shulman said the new capital will let the company “operate the business differently and take some bigger swings,” adding that engagement has risen and subscription cancellations have fallen—“A higher share of users are falling in love with the product and coming back.”
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Suno plans to significantly expand headcount: it currently employs about 200 people and aims to grow its workforce by up to 70% before the end of the year.
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Suno’s usage metrics include producing more than 7 million songs per day (described as “equivalent to Spotify’s entire music catalog”).
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On the legal-risk shift, investors and Suno point to model rebuilding using licensed material: after the settlements, Suno is “rebuilding its models on authorised catalogue with artist opt-in,” including Warner’s deal to build “licensed models” and Universal’s settlement pairing a payment with “licensing arrangement for a joint AI platform.”
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