Cambridge startup Suno, which lets users create songs using generative artificial intelligence, raised $400 million from venture capital investors in a deal that valued the company at $5.4 billion.
Founded in 2024, Suno has attracted tens of millions of users who want to use AI to make songs in almost any musical style. But the company has also drawn lawsuits from the music industry, alleging it violated the record companies’ copyrights, and complaints from some artists, who argue it devalued their work.
The new funding, one of the largest ever by a Massachusetts-based AI startup, adds to the recent momentum for the state’s growing AI sector. With giants such as Anthropic and OpenAI located in California and grabbing most venture capital dollars, local startups have mostly turned to applying AI to specific fields, such as Suno in music, Blitzy in software programming, and Lila Sciences in scientific research.
Suno chief executive Mikey Shulman and his three cofounders were working at local financial AI firm Kensho when they hatched the idea to create the music startup. The company’s app, which can create songs in specific genres but won’t copy the style of an existing artist or song, immediately took off.
The company settled a lawsuit with Warner Music Group last year, though other suits from the industry remained pending. But the company hinted it might be reaching a larger agreement soon.
“In the coming months, we’ll begin rolling out our first music model developed in partnership with the music industry,” the company wrote in a blog post on Wednesday. “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.”
The funding deal was led by Bond Capital with other VC firms including IVP, Forerunner, Union Square Ventures, Alkeon, Matrix, Lightspeed, Menlo Ventures, and Schroders Capital. The company said some artists, producers, and songwriters participated without disclosing their names.
Aaron Pressman can be reached at aaron.pressman@globe.com. Follow him @ampressman.