Suno, the most prominent AI music generation platform in the music industry, has raised $400 million at a $5.4 billion post-money valuation, the company announced on Wednesday.

Suno said Bond Capital, the venture capital firm whose portfolio includes OpenAI, Substack and Kalshi, led the round along with  IVP, Forerunner, Union Square Ventures, Alkeon and Quiet, with Matrix, Lightspeed, Menlo Ventures, and Schroders Capital participating as well. Notably, Suno also said leading artists, songwriters and producers” also participated in the round, though the company didn’t disclose who.

The funding round comes just six months after Suno previously announced a $250 million funding round that had valued the company at $2.45 billion.

“We’ve seen Suno used by professional producers and songwriters, but also by millions of people making music for the first time – because music creation is no longer the domain of a niche few,” Suno CEO Mikey Shulman said in a blog post announcing the new funding round on Wednesday. “It is becoming one of the most human things we do, a way people communicate, remember, and connect. What started as a simple idea has grown far beyond what we imagined, and today, we’re excited to share an important milestone.”

Suno remains one of the most controversial companies in music, with its ability to generate entire songs in seconds with just a text prompt from a user. The major music companies sued in 2024 on allegations of massive copyright infringement from the world’s biggest’s artists and songwriters, though Warner Music Group had announced last November a settlement and new partnership with the company. UMG and Sony remain in active litigation.

Earlier this year in an interview with THR,Shulman said he’s seeing a market shift in how the business views AI, with professional creators embracing his platform along with more casual users.

“I don’t meet a lot of producers and songwriters who aren’t using Suno at least a little bit in their workflows,” Shulman said. “I think people are starting to be a little more comfortable being public and upfront about their use, and most importantly, I think a bit more optimistic about the future. It’s not everyone, but there’s definitely a market shift.” 

Actual consumption of fully AI music still appears to be quite low. French music streaming service Deezer reported earlier this year that as much as 85 percent of AI music consumption on the platform is fraudulent, while Apple Music said less AI music made up less than 1 percent of weekly consumption on its service.

Still, earlier this year Suno said it had surpassed 2 million paying subscribers, and it’s currently the third most-popular app on Apple’s App Store’s music section.

In the blog post Wednesday, Shulman said its new model developed in partnership with WMG, its first industry-sanctioned model since the company’s founding in 2021 would be rolling out “in the coming months.”

“We believe there’s a huge opportunity to create new experiences for fans while helping artists reach audiences, build community, and unlock new creative and economic possibilities,” Shulman said.