AI music startup Suno ignores the lawsuit from record giants over copyright infringement and is reportedly raising another $100 million.

The AI-generated music startup Suno Inc. has become a sensation, despite facing infringement lawsuits from major record labels such as Universal Music Group and Warner Music Group. Undaunted by the controversy, it is reported that the company is actively embarking on a new round of fundraising negotiations, aiming for an amount of up to 100 million dollars, with the company's valuation expected to soar to 2 billion dollars.

The fundraising amount is expected to reach 100 million, with a valuation skyrocketing to 2 billion USD.

According to reports, Suno Inc. is currently in talks for a new round of fundraising, with an amount exceeding 100 million USD, and an overall company valuation looking at 2 billion USD, which is 4 times the previous valuation.

Suno has previously raised 125 million USD, with investors including:

Famous venture capital firms in Silicon Valley, USA: Lightspeed Venture Partners, Founder Collective.

Former GitHub CEO Nat Friedman.

Y Combinator partner Daniel Gross.

Matrix Partners, a well-established venture capital firm in the United States.

Insiders revealed that Suno's annual revenue has surpassed 100 million USD, making it one of the few generative AI startups that has actually turned a profit during the AI boom.

AI-generated music goes viral, record labels sue for infringement.

Suno focuses on allowing users to input simple textual descriptions to generate a complete song that includes melody, lyrics, and vocals, with a very low barrier to entry, thus sparking conversations among music enthusiasts and creators.

The left image is the SUNO homepage, and the right is the author's actual measurement of the generated song screen.

However, this technology has also sparked a backlash from the music industry. In June of last year, major record companies including Universal and Warner jointly sued Suno and another AI music company, Udio, accusing them of using copyrighted songs to train their models.

Record labels claim that these AI startups use existing music training models, which constitutes infringement, and are seeking damages of up to $150,000 per work, with total amounts potentially reaching billions of dollars.

Suno emphasizes that the technology is transformative, and both parties are negotiating a new settlement plan.

In response to multiple record labels suing for infringement, Suno co-founder and CEO Mikey Shulman issued a statement emphasizing that the company's technology is “Transformative” (, and that its original design intention is to generate new music content rather than to memorize or reproduce existing works.

On the other hand, record companies are discussing reconciliation and licensing agreements with AI music startups including Suno and Udio, with both parties intending to sign formal licensing and profit-sharing agreements. In addition to licensing fees, record companies also hope to acquire partial equity in these startups as part of the collaboration. This “licensing plus equity” model is seen as a new attempt by the music industry to confront the AI era.

Streaming platforms launch new AI music regulations to protect creators' rights.

At the same time, music streaming platforms are also developing new regulations for AI music. Spotify announced in September this year that it would collaborate with major and independent record companies to develop technology capable of identifying AI-generated content, and last month introduced measures to combat AI fraud and deception. Another European streaming platform, Deezer, has also begun actively labeling which songs are generated by AI on its platform to enhance transparency.

Lucian Grainge, the CEO of Universal Music, recently reiterated in an internal letter his willingness to collaborate with AI companies to develop new products, provided that the image and copyright of creators are respected. He emphasized that AI can be a new tool for music creation, but it must not sacrifice the rights of creators.

This article discusses the AI music startup Suno, which disregards the copyright infringement lawsuit from record giants and is reportedly raising another $100 million, first appearing in Chain News ABMedia.