This week, AI music generator Suno closed a $250 million Series C round at a $2.45 billion post-money valuation, generating $200 million in annual revenue.
Meanwhile, Universal Music Group, Sony Music Entertainment, and Warner Music Group struck licensing deals with new AI music platform KLAY.
Also this week, Warner Music Group settled its copyright infringement litigation with Udio and entered into a licensing deal for a “next-generation” AI–powered music platform.
Elsewhere, Warner Music Group generated $1.87 billion in calendar Q3 2025 as artist services and expanded-rights revenue soared 64.3% YoY driven by Oasis merchandise.
Here are some of the biggest headlines from the past few days…
1. SUNO JUST RAISED $250M AT A $2.45BN VALUATION – AND IT’S GENERATING $200M IN ANNUAL REVENUE
AI music generator Suno has closed a $250 million Series C round at a $2.45 billion post-money valuation.
The round was led by Menlo Ventures with participation from NVentures (NVIDIA’s venture capital arm), Hallwood Media, Lightspeed and Matrix. The funding round comes as Suno navigates significant legal challenges from the music industry.
The company is currently defending itself against copyright infringement lawsuits filed by record labels owned by Sony Music Entertainment, Universal Music Group, and Warner Music Group… (MBW)
2. UMG, SONY AND WARNER STRIKE LICENSING DEALS WITH NEW AI MUSIC PLATFORM KLAY
Los Angeles-based music technology company KLAY Vision Inc. has closed separate AI licensing deals with Universal Music Group, Universal Music Publishing Group, Sony Music Entertainment (SME), Sony Music Publishing, Warner Music Group, and Warner Chappell Music.
According to a press release issued on Thursday (November 20), these agreements “establish terms on which KLAY will help further evolve music experiences for fans, leveraging the potential of AI, while fully respecting the rights of artists, songwriters, and rightsholders”.
The company states that it is developing an AI music platform that “reimagines listening with immersive, interactive tools,” powered by KLAY’s Large Music Model, which, according to the announcement, is “trained entirely on licensed music.”
KLAY says that it has been working with key parties in the music industry for more than a year “to build an innovative and comprehensive licensing framework for an AI-driven music experience”. The company said that it is currently expanding its efforts to include “all independent labels, artists, publishers, and songwriters in this framework”, with the aim to create “a scalable foundation for the industry at large”. (MBW)
3. WMG REVENUES UP 12.6% YOY IN CALENDAR Q3 DRIVEN BY ALEX WARREN AND OTHER STARS, AS ‘ARTIST SERVICES’ REVENUES SOAR 64.3% THANKS TO OASIS MERCH
Warner Music Group has issued its financial results for the three months ended September 30, 2025 (calendar Q3 – the company’s fiscal Q4).
According to the company’s fiscal Q4 (calendar Q3) results, WMG saw its quarterly global company-wide revenues reach USD $1.868 billion (across recorded music, music publishing, and other activities).
Total revenue was up 12.6% YoY at constant currency. The company said on Wednesday (November 20) that its “all-time high” quarterly revenues were “underpinned by double-digit growth across recorded music and music publishing”. (MBW)
4. WARNER MUSIC GROUP SETTLES UDIO LAWSUIT, STRIKES LICENSING DEAL WITH AI PLATFORM
Warner Music Group has settled its copyright infringement litigation against AI music platform Udio. The companies have also entered into a licensing deal for a “next-generation” AI–powered music creation, listening, and discovery platform set to launch next year.
The news arrived just an hour after WMG announced a new partnership with Stability AI on Wednesday (November 19), which the companies say will “advance the use of responsible AI in music creation”.
According to a press release, the agreement with Udio spans WMG’s recorded music and music publishing businesses and “creates new revenue streams for artists and songwriters, while ensuring their work remains protected…” (MBW)
5. LIVE NATION FILES MOTION TO END US’S ANTITRUST LAWSUIT
Live Nation has filed a motion asking for a quick end to the antitrust case brought by the US Department of Justice against the company and its ticketing arm Ticketmaster.
In a memorandum supporting its motion for summary judgment, lawyers for Live Nation said the DoJ’s case against the company is based on “gerrymandered” evidence that doesn’t meet the legal criteria for monopoly power.
“Plaintiffs opened this case alleging that Live Nation had multiple, self-reinforcing monopolies and had – for fifteen years – engaged in ‘systematic’ and ‘intentional’ corruption of competition across ‘virtually every aspect of the live music ecosystem,’” lawyers wrote in the memorandum filed with the US District Court for the Southern District of New York on Tuesday (November 18).
“Strong words. If there was a lick of truth to them, one would expect plaintiffs to now have mountains of evidence demonstrating monopoly power and the anticompetitive effects of Live Nation’s conduct. And yet, after an 18-month investigation and a year of discovery, plaintiffs have barely a molehill.”… (MBW)
Partner message: MBW’s Weekly Round-up is supported by BMI, the global leader in performing rights management, dedicated to supporting songwriters, composers and publishers and championing the value of music. Find out more about BMI here. Music Business Worldwide
