Suno Targets $5B Valuation in New Funding Round

Suno is reportedly close to securing a Series D funding round according to reports from Axios. This could value the company at over $5 billion, more than double of its previous $2.45 billion valuation.

What is known about the Funding Round?

According to reports, Suno is preparing to close a Series D round in the coming weeks. A Series D round is generally funded by venture capital firms looking to invest in a low-risk business. The company was last valued at $2.45 billion in November, when it raised $250 million. The four-year-old startup has seen rapid growth, with over 100 million users and more than 2 million paid subscribers. Forbes estimates the company generated $150 million in revenue in 2025, including $25 million in February alone.

What does Suno do?

Suno allows users to generate songs using AI text prompts, producing music at scale. The platform reportedly generates over 7 million songs per day. CEO Mikey Shulman described the platform as, “the Ozempic of the music industry… everybody’s on it and nobody wants to talk about it.”

While the seeding round would mean good news for Suno, it’s not been all smooth sailing for the company. It has come under legal scrutiny from major record labels, which accused the company of using copyrighted material to train its AI models. However, Warner Music Group settled its lawsuit with Suno in November, also forming a partnership to develop licensed AI models.

For more such articles, read:

Soma Laboratory’s Enigma is a new synthesizer controlled by metal objects

Google’s Gemini May Spark Comeback of Third-Party Smart Speakers