ElevenLabs, the AI audio company behind music-generation platform ElevenMusic, announced a $300 million employee tender offer valuing the business at $22 billion—double its February valuation. Led by Wellington and T. Rowe Price, the transaction allows employees to sell existing shares to investors rather than raising new capital for the company. ElevenLabs attributes much of its growth to enterprise adoption of conversational AI, reporting that business customers now account for 55% of revenue. Its technology spans generated speech, voice cloning, dubbing and music, making the valuation a measure of a broader audio business rather than music generation alone.
For the music industry, that growth comes alongside an expanding network of licensing partnerships. ElevenLabs entered music generation in August 2025 with agreements involving Merlin and Kobalt, subsequently adding Believe and a September 2026 agreement with Universal Music Group. The UMG partnership calls for a separate fan platform supporting remixes, mashups and new interpretations of participating artists’ music. Although ElevenLabs’ valuation now exceeds Suno’s reported $5.4 billion valuation by more than four times, that comparison does not establish which company has the stronger music business: ElevenLabs has not disclosed music-specific revenue in its latest announcement.
Join the discussion