TL;DR
- Acquisition: Goldman Sachs-backed Splice has acquired UK sound studio Spitfire Audio for approximately $50 million.
- Focus on AI: The acquisition is part of Splice's strategy to enhance AI-driven music production.
- Market Expansion: Splice aims to tap into the growing demand for orchestral sound libraries and AI music creation tools, catering to both hobbyists and professionals.
Goldman Sachs-Backed Start-Up to Buy UK Sound Studio in Bet on AI Music-Making
In a bold move signaling a shift in the landscape of music production, Splice, a music creation platform backed by Goldman Sachs, has announced its acquisition of the renowned UK sound studio Spitfire Audio. This strategic purchase, valued at approximately $50 million, is aimed at integrating Spitfire Audio's extensive library of orchestral sounds into Splice's innovative platform, where artificial intelligence plays a central role in music-making.
Expanding Capabilities
By acquiring Spitfire Audio, Splice not only expands its offerings but also capitalizes on the increasing demand for high-quality sound libraries. As noted, Spitfire Audio is celebrated for providing sampled virtual instruments featuring recordings from notable artists and renowned studios, such as Hans Zimmer and Abbey Road Studios. This integration will allow users of Splice to access an expansive range of orchestral sounds and samples, enhancing their creative capabilities whether they are composing for film or producing original music.
“The teams at Spitfire Audio and Splice have deep respect for composers, musicians, and producers and are committed to celebrating and supporting their work,” said Kakul Srivastava, CEO of Splice[^2]. This sentiment reflects a shared vision of enhancing music creation through technology, particularly AI-driven tools.
The Growing AI Music Market
The acquisition aligns with a broader trend in the music industry towards the adoption of artificial intelligence. According to Midia Research, the market for music creation tools is projected to nearly double to $14 billion by 2031[^2]. With about 40% of Splice's users already engaging with its AI tools, the emphasis on this merger signifies a strong commitment to evolving music production in the direction of technology.
Splice, which has a user base of approximately 600,000 paying subscribers and generates over $100 million in annual revenue, is well-positioned to leverage Spitfire Audio's offerings to further enhance its service to musicians and producers globally[^2].
Implications for the Future
The acquisition of Spitfire Audio not only represents a significant milestone for Splice but also underscores the increasing intertwining of technology and creativity in the music industry. As companies explore innovative ways to inspire artists, the evolution of music production through AI is set to redefine how music is created and consumed.
The fusion of Splice's AI capabilities with Spitfire's orchestral expertise sets the stage for a new era in music production, where accessibility to high-quality sounds meets the advanced tools of tomorrow.
Conclusion
The strategic acquisition by Splice reflects a broader trend in the music industry toward embracing advanced technologies like AI to enhance creative processes. As the market for AI-driven music creation continues to expand, stakeholder engagement will be crucial in navigating the upcoming transformation in music production and distribution.
References
[^1]: "Goldman Sachs-backed start-up to buy UK sound studio in bet on AI music-making". Financial Times. Retrieved April 28, 2025.
[^2]: Anna Nicolaou (2025-04-28). "Goldman Sachs-backed start-up to buy UK sound studio in bet on AI music-making". Financial Times. Retrieved April 28, 2025.
[^3]: "Splice acquires Spitfire Audio for a reported $50m as it bets on AI music creation". Music Business Worldwide. Retrieved April 28, 2025.
[^4]: "Splice acquires Spitfire Audio and adds another puzzle piece in their AI music making master plan". Synth Anatomy. Retrieved April 28, 2025.
[^5]: "Music creation startup Splice buys London-based orchestral sound studio Spitfire Audio, a source says for ~$50M". Techmeme. Retrieved April 28, 2025.
Keywords: Splice, Spitfire Audio, AI music, music production, Goldman Sachs, acquisition, orchestral sounds.