Suno Raises $400M Despite Copyright Disputes

AI music generation startup Suno announced on Wednesday that it has closed a $400 million Series D funding round. Following this financing, the company's valuation reached $5.4 billion. Notably, just seven months ago Suno was valued at $2.45 billion, indicating strong investor confidence in the company's future despite ongoing lawsuits. Techcrunch.com reports .

The company's legal challenges are significant. Suno has admitted to training its AI models on copyrighted songs. While startup representatives consider this compliant with the "fair use" doctrine, Universal Music Group (UMG), Sony, and Germany's GEMA organization continue lawsuits against the company. However, Warner Music Group (WMG) reached an agreement by signing a licensing deal with Suno in November.

Initially, Sony and UMG accused the company of unauthorized use of 560 works. However, last month the record labels expanded their claims, stating that over 61,000 additional songs were used in training without permission. Despite this, Suno's user base continues to grow, and the app holds top positions in the Music category of the App Store.

According to Billboard, users create over 7 million songs daily on the Suno platform. The new funding round was led by Bond Capital, with participation from IVP, Forerunner, Union Square Ventures, and other major funds. In its statement, the company expressed satisfaction with collaborations with industry professionals and producers but did not disclose specific names.