Suno Raises $250 Million for $2.45 Billion Valuation
Suno, the innovative AI music creation platform, has recently secured a substantial $250 million in funding, led by Menlo Ventures, bringing its valuation to an impressive $2.45 billion. Founded in 2023, Suno has rapidly gained traction in the music industry, achieving $140 million in annual recurring revenue by the end of September 2023—a remarkable increase from $50 million just two years prior. The platform has attracted a vibrant user base, with creators generating approximately 7 million tracks and streaming 20 million minutes of music daily. This growth highlights Suno’s potential to revolutionize music creation, enabling both amateur and professional musicians to bring their ideas to life.
The Series C funding round included notable investors such as NVIDIA’s NVentures, Lightspeed, Matrix, and Hallwood Media, which has recently collaborated with AI artist Xania Monet. Monet, a product of poet Telisha Jones, has made history as the first AI-based act to chart on Billboard’s Adult R&B Airplay chart with her song “How Was I Supposed to Know?” This milestone underscores the growing acceptance and recognition of AI-generated music in the mainstream music industry. Suno’s CEO, Mikey Shulman, expressed excitement about the platform’s role in shaping the future of music, emphasizing the importance of empowering artists to experiment and collaborate creatively. However, despite its popularity, Suno faces challenges with user retention, as many users reportedly stop using the platform after just a month.
In September, Suno introduced the generative audio workstation, Suno Studio, which enhances user experience with AI stem generation and a new music model for improved vocal prompts. The company aims to leverage its recent funding to develop a comprehensive music ecosystem that fosters community engagement and creativity, moving beyond one-time music generation. However, Suno’s rise has not been without controversy; it faces legal challenges from major music companies, including Universal Music Group, Sony, and Warner Music, over alleged copyright infringements. As Suno continues to navigate these challenges while expanding its offerings, its impact on the music landscape is poised to grow, potentially reshaping how music is created and consumed in the digital age.
Suno, the leading AI tool for making music, said on Wednesday it raised $250 million from a group of investors led by Menlo Ventures that values the company at $2.45 billion.
Founded in 2023, Suno’s music creation app generated $140 million in annual recurring revenue at the end of September, up from $50 million at the start of 2025, according to two sources who were briefed on Suno’s pitch to investors. Suno users make around 7 million tracks and stream 20 million minutes of music daily, the sources said. Representatives for Suno did not immediately respond to request for comment about those figures.
Other investors in the series C round included NVIDIA’s venture capital arm NVentures, Lightspeed, Matrix and Hallwood Media, which earlier this year
signed the AI artist and Suno user Xania Monet
. Monet, the product of a poet named Telisha Jones, has had four
Billboard
charting songs this fall, including “How Was I Supposed to Know?,” which debuted on Billboard’s
Adult R&B Airplay
chart in November, the first known AI-based act to earn a spot on a
Billboard
radio chart.
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Suno CEO and co-founder
Mikey Shulman
said the company is “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,” Shulman said in a statement. “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 at Menlo Ventures, said Suno has “built something people genuinely love using and millions of fans are on the platform every day.”
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In September, Suno rolled out a generative audio workstation called Suno Studio that users can use to edit with AI stem generation, and v5 music model offering improved vocals and prompts to create tracks, according to a press release.
The company said in a statement that it aims to use the money to build out its “full-stack music ecosystem” to draw and keep users to foster a creative and social community, “rather than a one-off generation.” Though the number of users on the platform is growing rapidly, Suno is struggling with retention as a majority of users stop using the tools after a month, according to sources.
Suno’s popular AI tools have also generated controversy, as music companies including Universal Music Group, Sony and Warner Music have sued the company for alleged copyright infringement.
This story was updated at 11:30 a.m. on Nov. 19 and includes additional reporting by Kristin Robinson.
