Suno Hits $300M ARR: AI's Impact on the Music Industry
In Machines we Trust
In Machines we Trust
4.3 • 6 Ratings
🗓️ 28 February 2026
⏱️ 14 minutes
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Summary
Chapters
01:35 Suno's Growth and Capabilities
04:26 Copyright and Legal Battles
07:17 Google's Lyria 3 and Producer AI
10:04 Artists and AI Collaboration
12:25 The Future of AI Music See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Transcript
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| 0:00.0 | Today on the podcast, I'm talking about AI in music. |
| 0:02.8 | This is something new, if you know me, you know I'm like a huge fan of. |
| 0:05.8 | We have Google that recently came out with Lyria 3, their own audio music model, |
| 0:10.9 | and they've actually just made a huge acquisition. |
| 0:13.7 | They've purchased a big company. |
| 0:15.0 | In addition, we have Suno, who has just reached a new record for paid subscribers |
| 0:20.6 | and for annual recurring revenue. |
| 0:23.6 | So we're going to get into basically what's going on in the music industry. |
| 0:27.5 | There's a lot of changes and a lot of milestones that we've reached. |
| 0:30.0 | And this has come from someone who my background is I've been creating music on Spotify |
| 0:34.5 | and other places since I was in college. |
| 0:36.2 | A lot of it says a hobby, but I still |
| 0:37.6 | make a couple thousand dollars a month from some albums I posted when I was in college. So this |
| 0:44.2 | is something that I'm like super interested in. I've been posting AI music as well for a very |
| 0:48.7 | long time, something I experimented with almost eight years ago now. So this is an interesting place. Let's get into all of it. Before we do, I wanted to mention if you want to get access to a lot of the models I talk about on the podcast, including we're adding music models for the first time to my platform, AIbox.a.I. We're going to be adding some music models from 11 labs very shortly. If you want to try those out, you can go and make an account. It's 899 a month. You get access to over 40 of the top models for everything from Google Gemini to GROC to Claude to cohere to tons of open source models, a bunch of image generation models, and 11 labs and other models like that for audio. So all of that is 899 a month. You get 20% off if you get an annual plan. If you need more tokens, you can also get higher subscription tiers. But go check it out. It's all on the platform. All right. Let's get into what's going on in the AI music industry. So Suno, which is the platform I typically use when I'm creating AI gendered music. Udio is the second biggest one, but Suno seems to be one of the bigger players right now, and they have an awesome studio where you can basically put like a song in there and select a certain part of the song and type in an instrument like violin, and it will generate, you know, violin stems for just that particular part of the song. It does a whole much of really cool things or any instrument, |
| 2:01.1 | so you really can get quite creative with Suno. |
| 2:03.8 | Their CEO was just posting. |
| 2:06.0 | It's Mikey Schulman on LinkedIn. |
| 2:08.2 | He said that they have now reached 2 million paid subscribers |
| 2:11.1 | and $300 million in annual recurring revenue. |
| 2:14.9 | So this is, I mean, this is coming after just three months ago. |
| 2:17.5 | They raised $250 million, and they did it at a $2.45 billion valuation. I think when that happened, |
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