AI music company Suno has raised $400 million in Series D funding round. The post-money valuation stands at $5.4 billion. The company announced the round on Wednesday, June 3, 2026.
Bond Capital led the investment. Bond Capital’s portfolio includes OpenAI, Substack, and Kalshi. Other new investors in the round include IVP, Forerunner, Union Square Ventures, Alkeon Capital Management, and Quiet Capital.
Existing investors also participated. They include Matrix Partners, Lightspeed Venture Partners, Menlo Ventures, and Schroders Capital. Suno CEO Mikey Shulman confirmed in a blog post that the round also drew in unnamed artists, producers, and songwriters from across the music industry.
Valuation Jump
The new valuation of $5.4 billion is more than double Suno’s previous figure. In November 2025, the company closed its Series C round at a $2.45 billion valuation after raising $250 million. That Series C was led by Menlo Ventures and included NVIDIA’s venture arm NVentures, Hallwood Media, Matrix Partners, and Lightspeed.
Before that, Suno raised a $125 million Series B in May 2024, led by Lightspeed Venture Partners. That round valued the company at approximately $500 million. The company has now more than tripled its valuation in roughly seven months.
Suno is now the highest-valued startup in the AI music sector.
Company Background
Suno was founded in 2023 by Mikey Shulman, Georg Kucsko, Martin Camacho, and Keenan Freyberg. All four were previously employees of Kensho, an AI data analytics firm that S&P Global acquired. The company is headquartered in Cambridge, Massachusetts, with additional offices in New York City and Los Angeles.
In April 2023, Suno released its first public product, called Bark. Bark was an open-source text-to-speech and audio model published on GitHub. The music generation web app launched publicly on December 20, 2023.
The platform allows users to type a text prompt and receive complete song in return. The output includes vocals, harmonies, instrumentation, song structure. Users can specify genre, mood, instruments, tempo, lyrical content. The platform currently runs on version 5 of its AI model released in September 2025.
Revenue and User Growth
Suno surpassed 2 million paid subscribers as of February 2026. Its annual recurring revenue has reached $300 million as of the time of funding announcement.
For comparison, Suno’s ARR was $50 million at start of 2025. It rose to $140 million by September 30, 2025. It has now more than doubled from that figure.
At September 2025 mark, users were generating around 7 million tracks per day. They were also streaming 20 million minutes of music daily on the platform.
Suno ranked first in Apple App Store’s music category in multiple countries. Shulman noted this in his June 3 blog post.
Team and Hiring Plans
Suno currently employs around 200 people. The company expects to grow its headcount by up to 70 percent before the end of 2026. That would bring the total to roughly 340 employees.
Shulman said in his announcement that the funding will go toward new products, platform growth, and hiring.
Legal Battles
Suno has been at the center of major music industry lawsuits. In 2024, the Recording Industry Association of America filed suit against Suno and its competitor Udio on behalf of Warner Music Group, Universal Music Group, and Sony Music Entertainment. The complaint alleged mass copyright infringement in the companies’ AI training data.
Warner Music Group settled its case with Suno in November 2025. The two companies then announced a licensing partnership. As part of the deal, Suno acquired Songkick, a concert discovery platform, from Warner. The settlement was Suno’s first formal agreement with a major record label.
Universal Music Group and Sony Music Entertainment remain in active litigation against Suno as of this report’s publication. Last month, UMG and Sony asked a federal court for permission to add more than 61,000 copyrighted sound recordings to their lawsuit. The two labels used audio fingerprinting technology to identify recordings they allege were present in Suno’s training data.
Suno asked the same court to keep secret the exact number of audio files it used to train its model. The company argued that disclosing the figure would give competitors a strategic advantage.
Suno also faces separate legal actions from Denmark’s music rights organization Koda and Germany’s GEMA.
In April 2026, the Financial Times reported that licensing talks between Suno and the remaining major label plaintiffs had stalled. A person involved in the talks told the newspaper there was no clear path forward with the current proposal.
More than 1,800 independent artists have also supported class-action lawsuits against Suno and Udio alleging copyright infringement.
Warner Partnership and New Model
Despite the ongoing litigation with UMG and Sony, Suno is moving ahead with the product framework it built with Warner Music Group. Shulman said in his blog post that the company plans to release its first music model developed in partnership with the music industry in the coming months.
Under the Warner deal, the new model will allow users to reference and incorporate Warner-owned songs into their creations. The current Suno models will be deprecated when the new licensed models launch. Free-tier users will no longer be able to download audio. Only paid subscribers will retain download access, subject to monthly caps.
Bloomberg reported that Warner Music executives have expressed optimism about anticipated revenue under the partnership.
Use of Funds
Shulman said the $400 million will go toward three areas: expanding the user base, building new creation features, and growing the team.
The company also plans to invest in AI model development. Suno is preparing to release the model built in collaboration with the music industry. Testing of that model under the Warner partnership is already underway, according to a company representative.