AI music generator Suno has closed a $400 million funding round that values the company at $5.4 billion, announced June 3. The round was led by OpenAI backer Bond Capital, with IVP, Forerunner, Union Square Ventures, Alkeon, Lightspeed, Menlo Ventures and others joining. The valuation more than doubles the $2.45 billion Suno commanded just six months earlier.
The startup says it has passed 2 million paying subscribers and sits as the third most-popular app in Apple App Store's music category. Users are now generating more than 7 million songs per day, fueling investor appetite for generative-audio tools.
The raise comes even as Suno fights copyright lawsuits filed by major labels in 2024 over alleged mass infringement. Warner Music Group settled last November and struck a partnership; a jointly developed, industry-sanctioned model is due to roll out in the coming months.