AI music startup Suno raises $400 million at a $5.4 billion valuation

AI music platform Suno has closed a $400 million funding round, valuing the company at $5.4 billion. Corbin Bolies reports for Variety that the Series D round was led by Bond Capital, with participation from IVP, Forerunner, Union Square Ventures, Alkeon Capital Management and Quiet. Previous backers Matrix, Lightspeed, Menlo Ventures and Schroders Capital also joined.

The new valuation more than doubles Suno’s $2.45 billion valuation from November 2025, when the company raised $250 million. CEO Mikey Shulman announced the round in a blog post and said it also included investors from the music industry, though he declined to name them.

Legal battles and a first label deal

The funding comes amid an evolving relationship with major record labels. Warner Music Group, Universal Music Group and Sony Music Entertainment all sued Suno for copyright infringement in 2024. Warner Music Group settled last November and announced a licensing partnership with Suno, marking the platform’s first deal with a major label. UMG and Sony remain in active litigation against the company.

Shulman said a new AI model tied to the Warner Music Group partnership is planned for release in the coming months. He described it as a tool to “create new experiences for fans while helping artists reach audiences, build community, and unlock new creative economic possibilities.”

Growing user base

Despite the legal pressure, Suno has built a significant consumer following. The platform surpassed 2 million subscribers in February, with annual recurring revenue reaching $300 million. Shulman noted that the platform is used by both professional producers and first-time music makers.

“Music creation is no longer the domain of a niche few,” Shulman wrote. “It is becoming one of the most human things we do, a way people communicate, remember, and connect.”