AI music startup Suno raises funding at $5.4 billion valuation

Suno said on Wednesday it has raised more than $400 ​million in a funding ​round at a $5.4 billion valuation, as the ​AI music startup looks to enhance its platform by creating new tools.

Here are some details:

The Massachusetts-based startup, which allows users to generate songs ‌via AI ⁠prompts, ⁠said Bond Capital led the Series D funding round alongside venture capital firms such as IVP, Forerunner and Union Square Ventures


AI music companies ​have been under growing scrutiny from artists, who have objected to the use of their work to train models without ​compensation

More than 1,800 independent artists ⁠are supporting ‌class-action lawsuits against Suno and Udio, alleging that ​the ​actions of these startups "were an attack" on the ⁠music community's "most vulnerable and valuable members"

Last year Udio signed deals with Universal Music Group and Warner Music Group to settle copyright cases, while Suno reached a settlement with WMG

Spotify announced a deal with UMG last month, allowing the Swedish streaming giant's subscribers to create AI-generated covers and remixes of tracks by some ‌of the label's artists, doubling down on AI features to compete with Suno and Udio

Suno plans ​to begin ​rolling out its ⁠first music model developed in partnership with WMG in the coming months

The startup said in an emailed response it expects ​to work with additional industry partners, but did not provide further details

Existing investors, including Lightspeed and Menlo Ventures, participated in the fundraise

The startup had in November raised $250 million at a $2.45 billion valuation