AI music startup Suno doubles its valuation to $5.4 billion while fighting major record labels in court

AI music startup Suno has raised $400 million at a $5.4 billion valuation. That's double its valuation from just seven months ago. Bond Capital led the round, with participation from IVP, Forerunner, Union Square Ventures, and existing investors Lightspeed and Menlo Ventures.

Suno is now the highest-valued startup in AI music. The platform generates full songs from text prompts in seconds, with selectable genres, instruments, and lyrics. Co-founder and CEO Mikey Shulman says the money will go toward new products, growth, and hiring. The team of about 200 is expected to grow by up to 70 percent by year's end.

Suno has over two million subscribers and is on track for $300 million in annual revenue, but it's also fighting lawsuits from major record labels. Universal Music Group and Sony Music Entertainment accuse Suno of using "millions" of their copyrighted recordings to train its AI models. Suno has asked a US district court in Massachusetts to keep the exact size of its training data sealed, arguing that disclosure could let competitors reverse-engineer its approach. Warner Music Group settled with Suno back in November 2025 and signed a licensing deal.