Suno Raises $250 Million in Latest Round of Series C Funding

Suno, the generative AI music platform, has raised $250 million against a valuation of $2.45 billion. Capital firm Menlo Ventures was the primary engine of the investment, while Hallwood Media, Lightspeed, Matrix, and NVentures (NVIDIA’s venture capital division) participated as well.

Why it matters:

• This funding comes as major forces in the music industry begin to embrace AI.

• Universal Music Group (UMG) has recently partnered with Stability AI on new ventures and settled its lawsuit against Udio, a generative AI music platform that rivals Suno.

• The major label has also outlined its overarching AI strategy.

• Spotify recently announced it is working with UMG, Warner Music Group, and Sony Music on a series of new AI tools.

• While there is still major pushback from the creative industries regarding how AI can be legally and ethically used, these deals could make platforms like Suno central to the future direction of popular music.

Background:

• Ahead of this funding, Suno launched new features such as Suno Studio, the first-ever generative audio workstation, and v5, its latest music model.

What they said:

• Mikey Shulman, Co-Founder and CEO of Suno: We’re seeing the future of music take shape in real time. In just two years, we’ve seen millions of people make their ideas a reality through Suno, from first-time creators to top songwriters and producers integrating the tool into their daily workflows. This funding allows us to keep expanding what’s possible, empowering more artists to experiment, collaborate, and build on their creativity. We're proud to be at the forefront of this historic moment for music.”

• Amy Martin, Partner, Menlo Ventures: "Suno is the world's #1 music creation app, making music accessible to everyone. Mikey and the team have built something people genuinely love using, and millions of fans are on the platform every day, creating original songs and sharing them with friends.”