AI is cementing its place in the studio.
Suno, a generative AI music startup, raised $250 million in a Series C round led by Menlo Ventures. The round, which included participation from Lightspeed and Nvidia’s venture capital arm, brings the company’s valuation to $2.45 billion, up from $500 million from its previous funding round.
"We're seeing the future of music take shape in real time," said Mikey Shulman, Co-Founder and CEO of Suno, in the announcement.
According to the Wall Street Journal, Suno’s annual revenue has hit $200 million, with the majority coming from subscription revenue, offering both free and paid tiers. Seeking to appeal to both hobbyists and music professionals, the company recently integrated a full stack of professional-grade tooling into its app following its acquisition of Wavtool, an AI-powered digital audio workstation, or DAW, this fall.
Despite AI’s controversial position in creative spaces, Suno’s raise is only the latest sign that some in the industry are starting to warm up to the tech.
- Universal Music Group, one of the biggest labels in the industry, announced a partnership with Stability AI in late October to develop “responsibly trained” AI-powered music tools for professionals, and settled its lawsuit against AI platform Udio, opting instead to form a partnership to license music to the startup.
- Warner Music Group also settled its lawsuit with Udio on Wednesday, claiming the platform has taken “meaningful steps” in ensuring that the music on its platform is properly licensed.
- AI-generated tracks are also starting to top the charts: “Walk My Walk,” a country song released by AI artist Breaking Rust, currently sits at the top of Billboard’s Country Digital Songs sales chart. Xania Monet, an AI R&B singer, charted on Billboard in September and signed a $3 million record deal.
But not everyone in the industry is pleased. Suno itself has faced a number of lawsuits alleging copyright infringement, including those filed by Sony, UMG, Warner and most recently Koda, a Danish music rights organization.
Musicians have also started to rally against the tech: Paul McCartney, Kate Bush, Sam Fender, Hans Zimmer, Annie Lennox and more have all contributed to a silent protest album called “Is This What We Want?” featuring nothing but background studio noise. The album challenges a UK law that would give AI companies permission to use copyrighted works unless artists specifically opt out.