Suno CEO and co-founder Mikey Shulman announced that the AI music generation platform has reached $300 million in Annual Recurring Revenue (ARR).
This milestone marks a staggering 50% increase in just three months, up from the $200 million ARR reported during the company’s Series C funding round in November 2025. The rapid growth signals that generative music has officially transitioned from a viral novelty into a massive, scalable consumer subscription business.
Key Performance Milestones (as of Feb 2026)
The updated figures, shared via Shulman’s LinkedIn, highlight Suno’s dominance in the AI creative tools market:
- Paid Subscribers: Surpassed 2 million active monthly subscribers.
- Total Users: Over 100 million people have used the platform to create music since its launch two years ago.
- Valuation: Most recently valued at $2.45 billion following its $250 million Series C led by Menlo Ventures.
- Average Revenue: Back-of-the-envelope math suggests an ARPU (Average Revenue Per User) of ~$150/year, aligning with its Pro ($10/mo) and Premier ($30/mo) tiers.
The “Pivot to Partnership”: Solving the Legal Crisis
Suno’s financial success comes despite intense legal pressure from the traditional music industry. However, the company is aggressively moving to “make peace” with major labels:
| Entity | Status (Feb 2026) |
| Warner Music Group (WMG) | Settled & Partnered. WMG signed a landmark licensing deal in late 2025, allowing Suno to train future models on its catalog in exchange for revenue sharing. |
| Sony & Universal (UMG) | Ongoing Litigation. Lawsuits filed by the RIAA remain active in federal courts, though competitors like Udio have already begun settling. |
| Artist Coalition | Active Opposition. Earlier this week, a coalition of artists launched a “Say No to Suno” campaign, accusing the platform of “diluting the royalty pools” of human creators. |
Strategic Moves: Industry Integration
To bridge the gap between AI tech and the music business, Suno has hired a “dream team” of industry veterans in early 2026:
- Jeremy Sirota (Chief Commercial Officer): Former CEO of Merlin (the digital rights agency for independent labels).
- Paul Sinclair (Chief Music Officer): Former Warner Music Group executive.
- Sam Berger (Sr. Director, Artist Partnerships): Former Spotify executive.
The Vision: “Creative Entertainment”
Shulman has framed Suno’s growth as a counterweight to “passive consumption.” He argues that in an era of algorithmic feeds and endless scrolling, users are increasingly seeking tools that allow them to actively participate in culture. By turning one-click songs into editable sessions and offering commercial rights to paid users, Suno is positioning itself as the “Photoshop for Music.”
