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Suno, the artificial intelligence (AI) company behind the music-generation platform, has recently raised over $400 million in a series D funding round, bringing its valuation to $5.4 billion, even as it continues to face ongoing copyright lawsuits from major record labels. The Series D round comes roughly seven months after the company’s previous fundraising, which valued it at $2.45 billion.

The latest funding round was led by Bond Capital, with participation from investors including IVP, Forerunner, Union Square Ventures, Alkeon, and Quiet, alongside existing backers such as Matrix, Lightspeed, Menlo Ventures, and Schroders Capital. The company has said the round also included participation from unnamed artists, producers, and songwriters.

Previously, Suno has acknowledged that its system is trained on copyrighted songs, while arguing that this falls under the legal doctrine of fair use, which allows limited use of protected material under certain conditions. The company is facing litigation from major rights holders including Universal Music Group (UMG), Sony Music, and the German collecting society GEMA. Warner Music Group has separately reached a licensing agreement with Suno following earlier legal proceedings.