Generative AI music startup Suno AI raises over $400M at a $5.4B valuation
Generative artificial intelligence music creation platform Suno Inc. announced today that it raised $400 million in funding at a $5.4 billion valuation.
The Series D funding round comes almost six months after the company raised $250 million. Today’s round was led by Bond Capital, alongside IVP, Forerunner, Union Square Ventures, Alkeon and Quiet. Existing investors Matrix, Lightspeed, Menlo Ventures and Schroders Capital also participated in the round.
Suno, and other AI music generators, remain controversial across the industry as companies face copyright issues and creative struggles. AI music companies have faced increasing scrutiny as music labels and artists have rankled about models being trained on their work without compensation. More than 1,800 independent artists have supported class-action lawsuits against Suno and Udio Music, another generative AI music startup under the name Uncharted Labs Inc., alleging copyright infringement alongside music labels.
AI music has made quite the splash within the zeitgeist, with Spotify AG making a deal with Universal Music Group last month, allowing the music streaming service to create AI-generated covers and remixes of some of the label’s artists. This opened up a large variety of new AI features to compete with Suno and Udio.
