Suno Reportedly Raising Over $100 Million at $2 Billion Valuation

October 21, 2025
AI music startup Suno is in discussions to raise more than $100 million in funding at a valuation exceeding $2 billion, according to Bloomberg. The company, which generates complete songs from text prompts, is also reportedly generating over $100 million in annual recurring revenue.

Suno AI is in talks to raise more than $100 million in new funding at a valuation exceeding $2 billion, according to Bloomberg. The round would quadruple the company’s previous valuation and comes as it reportedly generates over $100 million in annual recurring revenue.

Founded in 2022, Suno allows users to create full musical tracks from text prompts, including lyrics and vocals. The company previously raised $125 million from investors such as Lightspeed Venture Partners, Nat Friedman, Daniel Gross, Matrix, and Founder Collective.

The startup is also engaged in discussions with major record labels to resolve ongoing legal disputes. In 2024, labels including Sony Music, Universal Music Group, and Warner Music Group filed lawsuits alleging that Suno used copyrighted material without permission to train its AI models. The companies are seeking damages of up to $150,000 per infringed work.

Suno’s co-founder and CEO Mikey Shulman has stated that the technology is designed to generate new content rather than replicate existing recordings. Settlement talks reportedly include potential licensing agreements and equity stakes for the record labels.

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