AI music generator Suno has raised $400 million in Series D funding, giving the company a valuation of $5.4 billion.
The latest round comes about seven months after Suno raised capital at a $2.45 billion valuation, reflecting continued investor support even as the company faces multiple copyright lawsuits.
Bond Capital led the round
The financing was led by Bond Capital.
Other participants included:
- IVP
- Forerunner
- Union Square Ventures
- Alkeon
- Quiet
Existing investors also joined the round, including:
- Matrix
- Lightspeed
- Menlo Ventures
- Schroders Capital
Suno said artists, producers, songwriters and other figures from the music industry also took part, though it did not disclose any names.
The absence of named backers from the music industry stands out, as public endorsements from artists could help counter criticism that record labels and musicians are united against AI music companies.
Copyright disputes remain unresolved
Suno has acknowledged that it trains its AI models on copyrighted songs.
The company argues that the practice is protected under fair use, a legal doctrine that permits limited use of copyrighted material without permission. Fair use cases are decided based on specific circumstances and can vary widely.
Several copyright holders have challenged that position.
Among those pursuing legal action are:
- Universal Music Group (UMG)
- Sony
- GEMA, Germany’s music rights organization
Warner Music Group (WMG) reached a different outcome. It settled with Suno and signed a licensing agreement with the company in November.
Record labels expanded their claims
When Sony and Universal Music Group first sued Suno in 2024, they alleged that the company had trained its models on 560 copyrighted songs.
The scope of the case has since widened.
Last month, the record labels sought to amend their complaint, alleging that Suno used more than 61,000 additional songs for AI training without authorization.
Growth has continued
The legal battles have not stopped Suno’s expansion.
The company remains near the top of the music category in the App Store.
According to a pitch deck obtained by Billboard, Suno users were generating more than 7 million songs a day when the company was raising its previous Series C round.
TL;DR:
Suno has raised $400 million in a Series D round led by Bond Capital, valuing the AI music company at $5.4 billion. The funding comes as Suno continues to face copyright lawsuits over claims that it trained its models on copyrighted songs without permission.
AI summary:
- Suno raised $400 million in Series D funding at a $5.4 billion valuation.
- Bond Capital led the round with support from several existing investors.
- Suno continues to face lawsuits from Universal Music Group, Sony and GEMA.
- Warner Music Group previously settled and signed a licensing deal with the company.
- Record labels now allege more than 61,000 additional songs were used without permission.
