Suno Raises $400 Million Series D At $5.4 Billion Valuation, Despite Copyright Lawsuits

Suno, the AI music-generation startup, announced a $400 million Series D funding round with a post-money valuation of $5.4 billion on Wednesday, June 3, 2026, and the round was led by Bond Capital.

“In June 2024, the AI-powered music generators Suno and Udio faced a copyright infringement lawsuit in a federal court”

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The Statesman said the Series D valuation of $5.4 billion is more than double Suno’s previous figure, after the company closed its Series C round in November 2025 at a $2.45 billion valuation.

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Suno’s growth and product reach were described alongside its legal exposure, including that the company has surpassed 2 million paid subscribers as of February 2026 and that its platform currently runs on version 5 of its AI model released in September 2025.

In the same funding context, The Statesman reported that Suno’s annual recurring revenue reached $300 million as of the time of the funding announcement and that users were generating around 7 million tracks per day at the September 2025 mark.

TechCrunch added that the company continues to face copyright lawsuits even as it raised the Series D round, noting that Warner Music Group settled and reached a licensing deal with Suno last November.

The legal pressure around Suno’s training practices has been paired with efforts to control what becomes public in related cases, including a motion described by Music Business Worldwide in the copyright dispute involving Udio.

Music Business Worldwide reported that Udio asked a federal court to seal the size of its AI training dataset, arguing competitors could use the figure to build rival products faster and more cheaply.

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In that same reporting, Music Business Worldwide said the move came days after rival AI music platform Suno made the same request in the copyright case against it, before a federal court in Massachusetts.

The dispute is framed around the “Training Data Number,” which Music Business Worldwide described as “the total volume of audio files that the plaintiffs claim Udio used to train its generative AI models.”

Le Monde.fr added that Suno and Udio are accused of training their AI on “millions of songs by artists who did not consent,” and it reported that the RIAA is seeking up to $150,000 per work whose copyrights have been infringed.

Suno’s funding and product plans are unfolding while major labels continue to litigate, with TechCrunch noting that copyright holders like Universal Music Group (UMG), Sony, and German music collection organization GEMA have “continued to pursue legal action against Suno.”

“AI music heavyweight Suno has officially secured a jaw-dropping $5”

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TechCrunch also said that when Sony and UMG initially sued Suno in 2024, the companies claimed that Suno had trained on 560 of their copyrighted works, and it reported that the record labels filed to amend their complaint to allege that “over 61,000 more songs were used for AI training without permission.”

Beyond the courtroom, SiliconANGLE described Suno’s stated intent to use the Series D funding to expand its platform and build better models, and it said Suno planned to roll out “its first music model developed in concert with the music industry” in the coming months.

The Statesman tied those plans to Suno CEO Mikey Shulman’s confirmation in a blog post that the round also drew in unnamed artists, producers, and songwriters, while also noting that Suno is headquartered in Cambridge, Massachusetts with additional offices in New York City and Los Angeles.

Le Monde.fr framed the broader stakes as a fundamental legal question for U.S. fair use, warning that the RIAA argues these services “offer machine-generated imitative music,” not allowing humans to express their creativity.