Still facing copyright lawsuits, AI music generator Suno raises another $400M
TechCrunch • • general
Key Points:
- Suno, an AI music-generation company, raised $400 million in a Series D funding round, valuing the company at $5.4 billion, nearly doubling its valuation from seven months ago.
- The company faces significant legal challenges, as it trains its AI on copyrighted songs without permission, relying on the fair use doctrine, which is legally complex and fact-specific.
- Major copyright holders, including Universal Music Group and Sony, have sued Suno, alleging unauthorized use of tens of thousands of songs for AI training, while Warner Music Group has settled and licensed its music to Suno.
- Despite ongoing litigation, Suno remains popular, consistently ranking high on App Store charts and enabling users to generate over 7 million songs daily as of its Series C funding.
- The Series D round was led by Bond Capital with participation from major venture firms and unnamed music industry professionals, with the lack of named artist endorsements notable amid industry opposition.