Suno, the leading AI tool for making music, said on Wednesday it raised $250 million from a group of investors led by Menlo Ventures that values the company at $2.45 billion.
Founded in 2023, Suno’s music creation app generated $140 million in annual recurring revenue at the end of September, up from $50 million at the start of 2025, according to two sources who were briefed on Suno’s pitch to investors. Suno users make around 7 million tracks and stream 20 million minutes of music daily, the sources said.
Though the number of users on the platform is growing rapidly, a majority of users stop using the tools after a month, according to two sources.
Other investors in the series C round included NVIDIA’s venture capital arm NVentures, Lightspeed, Matrix and Hallwood Media, which earlier this year signed the AI artist and Suno user Xania Monet.
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Suno’s popular AI tools have also generated controversy, as music companies including Universal Music Group have sued the company for alleged copyright infringement.
Suno CEO and co-founder Mikey Shulman said the company is “seeing the future of music take shape in real time.”
“In just two years, we’ve seen millions of people make their ideas a reality through Suno, from first-time creators to top songwriters and producers integrating the tool into their daily workflows,” Shulman said in a statement. “This funding allows us to keep expanding what’s possible, empowering more artists to experiment, collaborate, and build on their creativity. We’re proud to be at the forefront of this historic moment for music.”
Amy Martin, partner at Menlo Ventures, said Suno has “built something people genuinely love using and millions of fans are on the platform every day.”
In September, Suno rolled out a generative audio workstation called Suno Studio that users can use to edit with AI stem generation, and v5 music model offering improved vocals and prompts to create tracks, according to a press release.
The company said in a statement that it aims to use the money to build out its “full-stack music ecosystem” to draw and keep users to foster a creative and social community, “rather than a one-off generation.”
