Suno, an AI music generation platform, has raised $250 million in a Series C round led by Menlo Ventures, valuing the company at $2.45 billion. Despite facing legal challenges from major record labels and music rights organizations over copyright issues related to AI training data, Suno has achieved significant market success, generating $200 million in annual revenue. Investors remain optimistic about the potential of AI-generated music, emphasizing Suno's user-friendly platform and organic growth.