Suno, the AI music generation platform that lets users create original songs from text prompts, has raised $400 million in a new funding round valuing the company at $5.4 billion. The round was led by Bond Capital with participation from IVP, Forerunner, and Union Square Ventures.

The valuation more than doubles the figure Suno reached in November 2025, when it raised $250 million at a $2.45 billion valuation. The company says it now has over two million paying subscribers and that users generate more than seven million songs daily. Suno recently ranked as the number three app in Apple’s App Store music category in multiple countries.

The company is still facing copyright lawsuits from major record labels. Sony Music and Universal Music Group cases remain active. Warner Music Group settled its suit in November 2025 and signed a licensing deal with the platform, Suno’s first partnership with a major label. Suno said it plans to release its first music model built in direct collaboration with the music industry, marking a shift from the approach that originally drew the lawsuits.

The funding arrives during a concentrated period of capital activity in AI music tools. Rival platforms Udio and Loudly have also raised significant rounds in 2026. The broader AI investment wave has pushed valuations across generative media companies well above what traditional music industry metrics would have supported.

The music industry’s position on AI-generated content has shifted from blanket opposition toward cautious negotiation as platforms have scaled. Labels are now seeking licensing arrangements rather than outright bans, a change driven partly by the size of the user bases these platforms have built.

AI is reshaping creative industries at speed. Gemini 2.5 Flash from Google outperforms rivals on agentic creative tasks. Z.AI’s GLM 5.2 launched with a one million token context window and an open-weight MIT license, expanding access to frontier-level model capabilities. Google DiffusionGemma generates text four times faster than competing models and is being tested across media workflows.

Suno’s next model, developed with label cooperation, is expected later in 2026. If it performs commercially, it may determine how the remaining litigation is settled and how other AI music companies approach their own negotiations with the major labels.

The company processes more song generations in a single day than most recording studios produce in a year. Suno’s platform is publicly available and free to try, with paid tiers for higher-quality output and commercial use rights.