Suno, an artificial intelligence music startup valued at over $5 billion, is introducing a new tool called "Speech" that enables users to add background music to spoken-word projects, including poems, meditations, and speeches. This product expands on Suno's core offering, which focuses on generating songs across various genres with corresponding lyrics.
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Mikey Shulman, co-founder and CEO of Suno, stated at the Bloomberg Screentime conference in Los Angeles on October 1 that the service aims to be a hub for "creative entertainment" beyond just music. The Cambridge-based startup has gained recognition as one of the fastest-growing generative AI companies, enabling individuals with minimal musical experience to create complete songs from text prompts. Earlier this year, Suno surpassed two million paying subscribers and is projected to achieve approximately $300 million in annual recurring revenue.
Shulman emphasized the transformative power of AI, stating, "The magic of AI is that it’s a technology that lets us give a creative experience literally to everyone," underscoring Suno's mission in the realm of creative entertainment.
In June, Suno raised over $400 million, achieving a valuation of $5.4 billion—more than double its previous valuation of $2.45 billion just seven months prior. The funding round was led by Bond Capital, with support from investors such as IVP, Forerunner, Union Square Ventures, Lightspeed, and Menlo Ventures.
Suno’s rapid ascent has sparked controversy regarding the use of copyrighted music by AI companies. In 2024, major record labels sued Suno, alleging that the company trained its technology using copyrighted materials without authorization. While Warner Music reached a settlement and formed a licensing partnership with Suno, ongoing litigation with Universal Music and Sony Music Entertainment remains unresolved.
The dynamic between Suno and the music industry appears to be shifting toward collaboration. Recently, Suno introduced its first generation of models, referred to as v6, developed in conjunction with music industry stakeholders including Warner Music and BMG Rights Management. This new model aims to ensure that rights holders receive compensation, although the specific payment structure for artists and songwriters is not yet clearly defined.
Shulman remarked on the hesitation among artists to openly discuss their use of Suno due to the surrounding controversy. "It's a little bit hard to stick your neck out," he remarked, acknowledging the concerns of those hesitant to become early adopters. However, he expressed optimism that the music industry will eventually recognize AI's potential and embrace its integration, stating, "I think everybody will come along."