Suno said on Wednesday it has raised more than US$400 million (HK$3,120 million) in a funding round at a US$5.4 billion valuation, as the AI music startup looks to enhance its platform by creating new tools.
Here are some details:
The Massachusetts-based startup, which allows users to generate songs via AI prompts, said Bond Capital led the SeriesD funding round alongside venture capital firms such as IVP, Forerunner and Union Square Ventures.
AI music companies have been under growing scrutiny from artists, who have objected to the use of their work to train models without compensation.
More than 1,800 independent artists are supporting class-action lawsuits against Suno and Udio, alleging that the actions of these startups "were an attack" on the music community's "most vulnerable and valuable members".
Last year Udio signed deals with Universal Music Group and Warner Music Group to settle copyright cases, while Suno reached a settlement with WMG.
Spotify announced a deal with UMG last month, allowing the Swedish music streaming giant's subscribers to create AI-generated covers and remixes of tracks by some of the.
label's artists, doubling down on AI features to compete with Suno and Udio.
Suno plans to begin rolling out its "first music model developed in partnership with the music industry" in the coming months.
Existing investors, including Lightspeed and Menlo Ventures, participated in the fundraise.
The startup had in November raised US$250 million at a US$2.45 billion valuation.
Suno did not immediately respond to a Reuters request for comment seeking more details about the music model and industry partnership.
Reuters
