Legally embattled AI music startup Suno raises at $2.45B valuation on $200M revenue | TechCrunch

"If you want insight into just how worried VCs (and Silicon Valley, generally) are over legal challenges to AI training on copyrighted material, look no further than AI music site Suno. Suno, which allows anyone to create AI-generated songs through prompts, announced on Wednesday that it has raised a $250 million Series C round at a $2.45 billion post-money valuation. The round was led by Menlo Ventures with participation from Nvidia's venture arm NVentures, as well as Hallwood Media, Lightspeed, and Matrix."

"The company offers consumer monthly subscriptions (a free tier plus $8 or $24 per month plans) and launched a version of Suno for commercial creators in September. It has now hit $200 million in annual revenue, Suno told The Wall Street Journal. It previously raised a $125 million Series B in May 2024, led by Lightspeed Venture Partners, Nat Friedman and Daniel Gross, Matrix, and Founder Collective, at an estimated $500 million valuation."

"But Suno has also been the poster child for AI training lawsuits by human artists. The company is battling a suit by three major record labels, Sony Music Entertainment, Universal Music Group, and Warner Music Group, which alleges Suno trained on copyrighted materials scraped off the Internet without permission. Those types of suits still reside in a legal gray zone in the U.S., and most are settled, typically by a training data licensing agreement."

Suno raised $250 million in Series C funding at a $2.45 billion post-money valuation led by Menlo Ventures, with participation from NVentures, Hallwood Media, Lightspeed, and Matrix. The company offers consumer subscriptions (free tier, $8 and $24 plans) and launched a commercial-creator version in September. Suno reached $200 million in annual revenue and had previously raised $125 million in Series B at an estimated $500 million valuation. The company faces lawsuits from major labels and rights organizations alleging training on copyrighted material scraped without permission. Legal outcomes remain unsettled in the U.S., but many cases settle via licensing agreements.

Read at TechCrunch