Suno Secures $400M+ Funding Round, Boosting Valuation to $5.4B

Suno raises over $400 million, pushing valuation to $5.4 billion

June 3, 2026 By Murray Stassen

Suno  has raised over  $400 million  in Series D funding at a  $5.4 billion  post-money valuation.

The round was led by  Bond Capital , alongside  IVP ,  Forerunner ,  Union Square Ventures ,  Alkeon , and  Quiet , with participation from existing investors  Matrix ,  Lightspeed ,  Menlo Ventures , and  Schroders Capital .

The AI music company  announced  the round on Wednesday (June 3).

CEO and co-founder  Mikey Shulman wrote in a blog post that “as with our previous funding rounds, we’re thrilled to have participation from some of the best artists, producers, songwriters, and people from across the music industry.”

The funding more than doubles  Suno ‘s valuation from the  $2.45 billion  it achieved after closing a  $250 million  Series C round  seven months ago in November.

Axios   reported last week that Bond Capital would lead the latest round.

The confirmed sum significantly exceeds the  $250 million -plus initially anticipated when the round was  first reported  in early May.

“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,” CEO and co-founder  Mikey Shulman  wrote in a blog post.

> “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.” Mikey Shulman, suno

In an interview with   Bloomberg ,  Shulman  said the capital will be used to accelerate hiring, develop new products, and fuel further growth.

“Having more capital allows us to operate the business differently and take some bigger swings,” he told the outlet.

Suno currently counts around 200  employees and plans to increase its headcount by as much as  70%  by the end of the year, according to  Bloomberg .

The company  surpassed  2 million  paid subscribers in February , when CEO  Shulman  also said it was on pace for  $300 million  in annual revenue.

Shulman also  told  Bloomberg  that user engagement with the platform has increased, while cancellation rates have declined.

“A higher share of users are falling in love with the product and coming back,” he said.

Meanwhile, Suno continues to face copyright infringement lawsuits from major music companies and key European music rights organizations.

The RIAA   filed suit  against both Suno and rival Udio in mid-2024, acting on behalf of all three majors, alleging “mass infringement” of copyright. Udio has since reached settlements with both  Universal Music Group  and  Warner Music Group , signing licensing agreements with each for a new AI music platform expected to launch this year.

Suno reached a settlement with Warner Music Group  in November, but the AI company remains locked in legal battles with Universal Music Group  and  Sony   Music   Entertainment , as well as with Denmark’s Koda  and  Germany’s GEMA .

UMG  and  Sony Music   asked a federal court last month for permission to add more than 61,000 copyrighted sound recordings to their lawsuit against Suno .

The motion, which you can  read here,  comes after the record companies used audio fingerprinting technology to identify their recordings within Suno’s training data.

Suno recently asked the court to keep secret the exact number of audio files it used to train its AI music generation model – arguing that disclosing the figure would give rivals a competitive advantage.

In April, the  Financial Times   reported  that licensing negotiations between  Suno  and the remaining major label plaintiffs had stalled, with a person involved in the talks telling the newspaper there was “no path forward with the current proposal”.

According to  Bloomberg ,  Suno  has been testing products under its partnership with  Warner Music Group  and plans to launch the first one in the coming months.

The report said the initial product under the deal will resemble  Suno ‘s existing offering, but with the added ability for users to reference and incorporate Warner  songs.

In his blog post on Wednesday, Shulman said that “in the coming months, we’ll begin rolling out our first music model developed in partnership with the music industry.”

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.”

Bloomberg noted that artists, producers, songwriters, and music industry executives have invested in Suno , though  Shulman  declined to name specific individuals.

Daegwon Chae , a General Partner at  Bond Capital , compared  Suno  to coding tools that have enabled non-programmers to build their own applications, telling  Bloomberg  that the company occupies a similar position in music.

“Suno unlocks a new part of the entertainment market based on active participation, creation and engagement,”  Chae  told the outlet. Music Business Worldwide

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_Originally reported by [Music Business Worldwide](https://www.musicbusinessworldwide.com/suno-raises-over-400-million-pushing-valuation-to-5-4-billion/)._