AI-powered music creation platform Suno has raised $250 million in a Series C funding round led by Menlo Ventures, valuing the company at $2.45 billion. The round also saw participation from existing investors, including Lightspeed Venture Partners, Nat Friedman, and Daniel Gross, according to multiple reports.
The new valuation marks a sharp rise from Suno’s roughly $500 million valuation in 2024, reflecting the rapid adoption of its AI music generation technology among creators, producers, and consumers. Sources close to the company indicate that Suno has reached $200 million in annual recurring revenue, a significant milestone for a startup less than three years old.
Founded in 2022 and originally incubated at MIT, Suno’s platform allows users to create complete songs from text prompts or melodies within seconds. The company competes with rivals like Stability AI’s Harmonai and Google DeepMind’s Lyria model, but has differentiated itself through a user-friendly interface and partnerships with music labels exploring AI-assisted creativity.
Menlo Ventures partner Matt Murphy said the firm sees “AI music as the next frontier in creative expression,” adding that Suno’s strong technical foundation and growing community make it a category-defining player. The company plans to use the new capital to expand its research team, invest in artist partnerships, and scale its infrastructure to meet rising demand.
The funding comes as AI-driven creative tools increasingly attract venture capital and mainstream attention. With established platforms like Adobe and Soundful entering the space, Suno’s massive valuation jump underscores investor confidence in the future of generative music.