Suno has raised more than $400 million in new funding and says it is preparing to release its first music model developed with the music industry.

The AI music startup said the Series D round valued the company at $5.4 billion after the investment. Bond Capital led the round, with participation from IVP, Forerunner, Union Square Ventures, Alkeon and Quiet. Existing backers Matrix, Lightspeed, Menlo Ventures and Schroders Capital also took part.

Suno said artists, producers and songwriters were also involved in the financing, continuing a pattern from its earlier fundraises. The company framed the investment as support for its effort to make music creation more accessible while building tools that work for creators.

Founded around the idea that more people should be able to make music, Suno has positioned artistry as a core part of its product development. The company said more than half of its employees are musicians and that it works closely with industry professionals to understand creative workflows. That approach, it said, is meant to help develop tools that genuinely support musicians rather than replace them.

The startup said its products are now used both by professional creators and by millions of people who are making music for the first time. According to Suno, the service has been used to turn group chats, inside jokes and everyday events into songs. It also pointed to viral trends that helped push the app to No. 1 in the Music category of the App Store in dozens of countries.

Suno highlighted a range of personal use cases as well, including people in hospice care creating songs for loved ones, therapists using music creation with teenagers dealing with mental health issues and caregivers making personalized songs for people with dementia or Alzheimer’s disease.

The company said the new funding will help it expand what users can do on the platform while continuing to focus on creative expression. It did not disclose detailed financial terms beyond the valuation and size of the round.

Looking ahead, Suno said it plans to begin rolling out its first music model built in partnership with the music industry in the coming months. The company said it sees an opportunity to create new experiences for fans while helping artists grow audiences, build communities and find new creative and economic opportunities.

The announcement comes as AI-generated music continues to draw both strong user interest and scrutiny from parts of the recording industry. Suno’s decision to emphasize collaboration with artists and industry figures suggests it is seeking a more formal relationship with the music business as it scales.

For now, the company is presenting the new funding as a way to expand its consumer product and deepen its ties with creators. Suno said it expects the next phase of development to focus on both musical expression for everyday users and more tools for artists working professionally.