Every two weeks, users of AI music platform Suno create as much music as is currently available on Spotify, according to Suno's investor presentation materials obtained by billboard. These users are predominantly men aged 25 to 34 who, according to the documents and other sources, spend an average of 20 minutes a day creating the approximately 7 million songs produced on the platform.
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Suno sees a future where creators and listeners don't have to leave the app to create, stream or share their music on social networks as they expand their offerings. The goal is listed as creating “high-quality, high-intent music discovery” and “artist-fan interaction.”
Now Suno may have the money to realize this ambitious vision. Suno announced last week that it had raised $250 million in a C fundraising led by Menlo Ventures. Other investors included NVIDIA's venture capital arm NVentures and Hallwood Media. The round increases Suno's valuation to $2.45 billion.
“In just two years, we’ve seen millions of people turn their ideas into reality using Suno, from first-time writers to top songwriters and producers who integrate the tool into their daily workflows,” said Suno CEO Mikey Shulman said in a statement about the company's new cash influx. “This funding will allow us to further expand our capabilities and give more artists the opportunity to experiment, collaborate and expand their creativity. We are proud to be at the forefront of this historic moment for music.”
The embedding materials, purchased from billboard, Provide more insight into the company's ambitions for what Shulman calls the “future of music,” which he says is “taking shape in real time.” In the materials, Suno claims that the company will reach $1 billion in revenue by 2028, and “that's before we think about monetizing consumption.” Ultimately, the company says, the Suno “of tomorrow…will power the new, larger music ecosystem and be a $500 billion company.” Suno representatives did not respond to multiple requests for comment.
According to the pitch deck, this round of funding will be distributed across the following uses: 30% computing power, 20% mergers and acquisitions, 20% discovery, 20% marketing, 15% data and 5% partnerships. The company has already shown interest in expanding and expanding its offerings through acquisition, purchasing digital audio workstation WavTool in June 2025.
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In particular, computing power – the hardware, processors, memory, storage and energy that power data centers – has been the company's largest cost as of January 2024, which is a common situation for many AI companies. “Amid the AI boom, computing power is emerging as one of the most important resources of this decade… there is an insatiable need for more,” says a McKinsey study on computing costs in the age of AI.
For example, OpenAI's AI video and social platform, Sora, particularly struggles with high computational costs due to the complexity of video generation. According to an estimate of ForbesSora costs the company up to $15 million per day to operate. According to Suno's financials, reviewed by billboardSince January 2024, Suno has spent over $32 million training its model. Of this, $32 million is for computing power and $2,000 is for data costs – the cost of content such as music that the company uses to train its model.
Suno is currently embroiled in a series of legal disputes regarding the data on which the company trains its model. These include two copyright infringement class-action lawsuits filed by indie music groups; a lawsuit from Danish rights group Koda; and one from the German collecting society GEMA. Most significant, however, is the copyright infringement lawsuit filed against Suno by the three major music companies, Sony, Universal and Warner, for $500 million, alleging widespread copyright infringement of their sound recordings “on an almost unimaginable scale” to train its model.
In recent months, there have been reports that Suno — and Udio, which was also sued by the majors in a nearly identical lawsuit — were in licensing and settlement discussions with the majors. At least some of this reporting turned out to be true: Recently, Udio reached an agreement with both Universal and Warner, creating a licensing structure for their music recordings and publishing interests. (Sony's lawsuit against the company is ongoing). Now, to work with music companies, Udio is transforming its service to become more of a fan engagement platform where users can play with participating songs in a “walled garden,” meaning users cannot download and post the creations to streaming services.
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Suno's pitch deck says nothing about its lawsuits with copyright holders. There is also no plan to license music content discussed.
Suno convinced investors of its vision to create a service where people can “create, listen and inspire” on the platform[ing] Music from passive consumption to an active participatory culture.” To expand on this vision, Suno plans to launch other products such as a voice beautification filter and a social media service. It also touts its work as having cultural power beyond consumption on its own service, including a photo of the cover of viral AI band The Velvet Sundown alongside the text “Suno songs go viral off-platform.”
The deck features an image of a user playing the guitar in a TikTok-like vertical social media video. In the top right corner, above typical social media buttons (“Like,” “Comment,” and Share), there is a button that says “Create a Hook,” meaning users connect by iterating and remixing each other’s creations in a video and social-forward way.
However, the company's vision for the future depends on customer acquisition and reducing the number of users who leave the service after joining. According to the report, Suno says it already has 1 million subscribers, a 300% increase from last year, and currently says about 25% of subscribers remain after 30 days. On a weekly basis, Suno says it achieves 78% retention for subscribers and 39% weekly retention for all users.
Suno's investment materials say that a positive indicator is that the company is “reactivating” an increasing number of users, meaning that these users returned after a month. As of July 2025, Suno claims to have 350,000 reactivated users per week. The company attributes this to things like new features, increased awareness and improvements to its model.
Additional reporting by Elizabeth Dilts Marshall.