Synopsis
AI music startup Suno has secured over 400 million dollars in funding, valuing the company at 5.4 billion dollars. This investment will help Suno develop new tools for its platform. The company is also working on partnerships with music labels. This move comes as AI music technology faces scrutiny from artists and competition from rivals like Udio and Spotify.Listen to this article in summarized format
Here are some details:
The Massachusetts-based startup, which allows users to generate songs via AI prompts, said Bond Capital led the Series D 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 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 WMG in the coming months
The startup said in an emailed response it expects to work with additional industry partners, but did not provide further details
Existing investors, including Lightspeed and Menlo Ventures, participated in the fundraise
The startup had in November raised $250 million at a $2.45 billion valuation
