AI music startup Suno raises $400 million at $5.4 billion valuation, doubling its worth in seven months

Suno raised $400 million at a $5.4 billion valuation, double its valuation from seven months ago. Bond Capital led the round with participation from IVP, Forerunner, Union Square Ventures, Lightspeed, and Menlo Ventures.

The platform generates full songs from text prompts in seconds with selectable genres, instruments, and lyrics. Suno has over two million subscribers and is on track for $300 million in annual revenue.

Suno is fighting lawsuits from Universal Music Group and Sony Music Entertainment, which accuse the company of using "millions" of copyrighted recordings to train its AI models. Warner Music Group settled with Suno in November 2025 and signed a licensing deal.