The AI music generation app Suno has raised $400 million in new funding, valuing the company at $5.4 billion. The round was led by Bond Capital, with backing from several new and existing investors.
Suno CEO and co-founder Mikey Shulman wrote in a blog post that “as with our previous funding rounds,” the Series D saw “participation from some of the best artists, producers, songwriters, and people from across the music industry.”
The funding more than doubles the company’s valuation of $2.45 billion from late 2025.
“This funding will help us accelerate what matters most: helping more people express themselves through music, while continuing to expand what’s possible for artists and creators on Suno,” Shulman wrote.
In an interview with Bloomberg, Shulman said the money will go toward hiring more staff, building new features, and growing the platform.
“Having more capital allows us to operate the business differently and take some bigger swings,” he said.
Suno currently has about 200 employees and plans to grow its team significantly.
The company has also seen strong growth, surpassing 2 million paid subscribers and trending toward roughly $300 million in annual revenue.
“A higher share of users are falling in love with the product and coming back,” Shulman said.
The company is still dealing with ongoing copyright lawsuits from major music labels, which could impact its future.
Suno remains under legal dispute with Universal Music Group and Sony Music Entertainment, as well as with Denmark’s Koda and Germany’s GEMA. On the other hand, Suno and Warner Music Group have formed a partnership following the November settlement of their lawsuit.
Suno is also working with WMG on new products, including tools that would let users incorporate licensed songs into AI-generated music, as reported by Bloomberg.
“In the coming months, we’ll begin rolling out our first music model developed in partnership with the music industry,” Shulman said.
He added: “We believe there’s a huge opportunity to create new experiences for fans while helping artists reach audiences, build community, and unlock new creative and economic possibilities.”
“Suno unlocks a new part of the entertainment market based on active participation, creation and engagement,” said Bond Capital’s Daegwon Chae.
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