Still facing copyright lawsuits, AI music generator Suno raises another $400M

Key points

• Suno, the AI music generation company, announced on Wednesday that it has raised a $400 million Series D round, valuing the company at $5.4 billion.
• It was only about seven months ago that Suno raised at a $2.45 billion valuation, underscoring that investors are confident in the company’s future despite the litigation it faces.
• That legal trouble isn’t minor.
• As Suno itself has admitted, the company trains its AI on copyrighted songs.
• The company argues that this is permissible according to fair use — a legal doctrine that allows limited use of copyrighted material without permission, but one that is highly fact-specific and can vary widely from case to case.