Menlo backs Suno at $5.4 billion despite label lawsuits
Investor Amy Wu Martin says Suno’s user behavior justifies Menlo’s bet as Sony and Universal continue copyright litigation.
By Daniel Okafor · Business Editor
3 min read
Menlo Ventures has increased its bet on Suno even as the AI music company faces major copyright lawsuits from record labels. Fortune reported that Menlo partner Amy Wu Martin led the firm into Suno’s $250 million funding round last fall and invested again in a $400 million June round that valued the company at $5.4 billion.
Suno lets users generate complete songs from text prompts, without playing instruments or using recording software. Music Business Worldwide, Billboard and TechCrunch have reported that the company has more than 100 million lifetime users, 2 million paying subscribers and $300 million in annual recurring revenue, less than three years after becoming publicly available.
Investor sees a new kind of music creation
Wu Martin told Fortune that she uses Suno to make AI-generated songs for her son. She described the appeal as personal rather than commercial: people can create music for themselves without seeking an audience, payment or a career in entertainment.
Her investment case centers on the drop in the cost and effort needed to make media with AI tools. Wu Martin told Fortune that the payoff for creating content has changed because users can make something quickly and enjoy it privately.
She called the pattern “single-player creation and consumption,” according to Fortune. The idea is that people may use Suno the way they cook a meal at home: for their own satisfaction, not to compete professionally.
Copyright cases remain unresolved
The legal risk around Suno remains significant. Variety reported that a music industry trade group sued Suno in June 2024 on behalf of Sony, Universal and Warner, alleging that Suno trained its AI system on copyrighted recordings without permission or licenses.
The Wall Street Journal reported that Warner settled its case in November 2025. As part of that agreement, Suno acquired Songkick, Warner’s concert-discovery app, according to Music Business Worldwide.
Sony and Universal remain in court, TechCrunch reported. Music Business Worldwide reported that the two companies moved to add more than 61,000 songs to their complaint, saying evidence produced in the case showed Suno had trained on “millions” of their tracks. Suno has asked the court to reject that amendment, according to Music Business Worldwide.
Germany’s music rights organization, GEMA, also has a case involving Suno, with a ruling delayed until July 31, Music Business Worldwide reported.
Fortune reported that Suno generates 7 million tracks a day, citing Billboard, raising questions about what a loss in court could mean for the company’s economics if rights holders receive a cut. Wu Martin declined to discuss that scenario in detail, telling Fortune that “a lot of conversations” were underway.
Wu Martin told Fortune she is focused on the pace of adoption she sees at Suno. Menlo has said the company has grown fourfold since its investment, and Wu Martin argued that consumer behavior in new technology waves often trails technical progress.
This story draws on original reporting from Fortune.