Suno, a US startup that generates songs from text prompts using AI, has raised $400 million in a round led by Bond Capital at a $5.4 billion valuation.

The company said the the funding will support hiring, new products, and expansion.

The round also included IVP, Forerunner, and Union Square Ventures, with existing investors Lightspeed and Menlo Ventures participating.

The raise follows a series C round of $250 million at a $2.45 billion post-money valuation about seven months earlier.

Suno said in February that it had passed 2 million subscribers and was on pace for $300 million in annual sales.

Warner Music Group has settled litigation with Suno and signed a licensing partnership. However, the company still faces legal claims from groups such as Koda and GEMA.

🔗 Source: Bloomberg