Suno AI Music Startup Valued at $2.45 Billion

Users pay between $8 and $24 per month for commercial licenses to their generated tracks.

The startup tripled its annualized revenue from $100 million in October to $300 million in February. Forbes estimates 2025 revenue at $150 million. 45 billion valuation in November. Menlo partner Amy Wu, who led the $250 million Series C round, said consumers use the tool because it adds value to their lives.

2024, Universal Music Group, Sony Music, Warner Music Group and the Recording Industry Association of America sued Suno. The labels alleged the company downloaded millions of copyrighted recordings from YouTube to train its model without permission.

Suno denied the claims. CEO Mikey Shulman, 39, said the process is comparable to humans listening to music and learning from it. The case remains ongoing. In November 2025, Suno settled with Warner Music Group. Under the agreement, Suno can use licensed recordings and limit downloads to paid subscribers.

Warner CEO Robert Kyncl described the partnership as a source of new revenue that can be shared with artists who opt in. Universal Music Group has not reached a settlement. Chief digital officer Michael Nash said the label wants AI-generated songs restricted to dedicated applications rather than shared on social media and streaming platforms.

Ron Gubitz, executive director at the Music Artists Coalition, said artists should not have to compete with machines that can produce millions of tracks.

Some professional producers and songwriters use Suno to generate track ideas from pre-written lyrics before refining them in other software. Shulman said many professionals keep their use private. In September, Suno released Studio, an audio workstation for creating, editing and layering tracks.