Suno has raised $250M in investor funding as its users generate an entire Spotify catalog worth of music every fortnight, with the platform now aiming to offer creation, listening, and social media all in one.
AI music platform Suno is positioning itself for a massive expansion after securing a new $250 million funding round, and internal investor materials obtained by Billboard suggest some pretty staggering numbers. According to the pitch deck, users on Suno are generating music at a breakneck pace: every two weeks, the platform’s output adds up to roughly the same volume of music currently available on Spotify.
The documents say Suno’s core user base skews male and between the ages of 25 and 34, and on average they spend about 20 minutes per session creating part of the roughly 7 million tracks produced each day.
Now, Suno might have the money to fulfill that ambitious vision. Suno announced last week that it had raised $250 million in a C fundraise, led by Menlo Ventures, with additional investors including NVIDIA’s venture capital arm NVentures and Hallwood Media. The round brings Suno’s valuation up to $2.45 billion.
The newly announced funding round, led by Menlo Ventures, saw additional investment from NVentures (NVIDIA’s venture capital arm) and Hallwood Media, and brings the company’s valuation to $2.45 billion.
Suno CEO Mikey Shulman celebrated the investment in a statement, saying, “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. 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.”
The deck outlines a plan to turn Suno into a contained ecosystem for creation, listening and social sharing, with the stated goal of enabling what the company calls “high-value, high-intent music discovery” and “artist-fan interaction.”
By 2028, Suno predicts it will reach $1 billion in revenue before factoring in any monetisation of listening. The materials go so far as to claim the platform could eventually support a music ecosystem worth $500 billion.
A sizable portion of the new funding is earmarked for computing power, which Suno identifies as its most significant expense since early 2024. Like many AI companies, the platform requires massive hardware resources to train and run its models. Financial documents reviewed in the pitch deck show that since January 2024, Suno has spent over $32 million on compute and only $2,000 on data costs.
Suno’s rapid growth comes as it faces multiple lawsuits over the material used to train its model, including class action suits from indie musicians and major copyright cases from Sony, Universal and Warner, the last of which seeks $500 million in damages. The deck does not mention these legal battles or outline any licensing strategy, even as competitor Udio has already settled with two major labels and reoriented its service around a more controlled engagement model.
Beyond legal issues, Suno’s future ambitions lean heavily on building out new features. Planned additions include a voice-processing tool and a social feed structured around creation and remixing, reflected in mockups that show users interacting through short-form video and tapping a Create Hook button to iterate on each other’s songs.
The company claims it has reached one million subscribers, up 300 percent year over year, with weekly retention of 78 percent among subscribers and 39 percent across all users.
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