Suno, the AI music platform that allows users to create songs with simple text prompts, has raised over $400 million at a $5.4 billion valuation, the company announced Wednesday.Bond Capital led the Series D funding round, and IVP, Forerunner, Union Square Ventures, Alkeon and Quiet joined as new backers.
Existing investors Matrix, Lightspeed, Menlo Ventures and Schroders Capital also contributed.The raise more than doubles the $2.45 billion valuation Suno reached last November despite ongoing explosive copyright lawsuits with major labels.
The platform reportedly surpassed 2 million paid subscribers in February and has reached $300 million in annual recurring revenue.“We’ve seen Suno used by professional producers and songwriters, but also by millions of people making music for the first time,” wrote CEO Mikey Shulman in a blog post.
“It is becoming one of the most human things we do, a way people communicate, remember, and connect.” Shulman, who faced pervasive backlash last year after claiming in an interview that most people find the music creation process “not really enjoyable,” said the capital will go toward accelerating product development, launching new features and scaling internal operations.The round also purportedly includes investment from artists, producers and songwriters, though he declined to name any of them.
Universal Music Group and Sony Music remain in active litigation against Suno following a June 2024 copyright infringement lawsuit, while Warner Music Group settled in November 2025 and has since formalized a licensing partnership.Suno hit an impasse with UMG and Sony in licensing talks earlier this year, with both labels rejecting the company’s proposed distribution model for AI-generated music.
Whether Wednesday’s milestone changes the tenor of those negotiations remains to be seen....