Splice’s $50M Acquisition of Spitfire Audio: Strategic AI Play in Music Tech

In a defining move at the intersection of artificial intelligence, digital creativity and asset consolidation, music tech platform Splice has agreed to acquire London-based Spitfire Audio for approximately $50 million. The deal reflects a broader strategic push to deepen Splice’s sound library, enhance its AI capabilities, and strengthen its market position in a rapidly evolving creator economy.

Strategic Fit: Orchestral Texture Meets AI Intelligence

Founded in 2013, Splice is a New York-based platform offering millions of royalty-free samples — from vocal hooks to drum loops — to its growing base of 600,000+ paying users. Its mission is to democratise music production through accessible, professional-grade tools. Splice reported annual revenue exceeding $100 million and was last valued at $500 million in a 2021 round led by Goldman Sachs and Matt Pincus’s MUSIC fund.

Enter Spitfire Audio, a high-end orchestral sample company whose sound libraries are revered by film composers and producers alike. Its portfolio includes recordings from the BBC Symphony Orchestra and sessions at Abbey Road Studios, and its samples have featured in acclaimed film scores (e.g. Moonlight) and experimental albums by artists like Radiohead. Spitfire also offers premium packs, such as a $299 percussion set produced by Hans Zimmer.

By acquiring Spitfire, Splice is making a vertical integration play — layering premium orchestral content onto its platform while acquiring IP, technology, and a world-class recording pipeline.

Commercial Relevance: Bedroom Producers to Billboard Charts

Splice’s reach isn’t confined to hobbyists. Its samples have been used in global hits including:

• Sabrina Carpenter’s “Espresso” – the guitar riff and drum loop were created by Splice artist Vaughn Oliver.

• Doja Cat’s “Say So” and Playboi Carti’s “OPM Babi” also relied on Splice samples.

These examples underscore Splice’s ability to bridge consumer-grade accessibility with top-tier commercial output — a hallmark of scalable, defensible platforms.

AI as an Enabler — Not a Replacement

Splice’s CEO Kakul Srivastava has emphasised that their approach to AI is fundamentally different from text-prompt generators like Suno or Udio, which have sparked industry backlash. “Most musicians do not want to make music that way,” she noted. Instead, Splice is leveraging AI to augment creative workflows — suggesting samples based on genre, mood, or even interpreting a user’s vocal input via smartphone.

Crucially, all Splice samples are created by human musicians. The platform not only produces in-house content but also pays independent artists a share of subscription revenue, often sourcing talent globally (e.g. São Paulo funk, Seoul K-pop). This model ensures cultural authenticity while allowing Splice to scale its catalogue in a decentralised, asset-light way.

Investor Lens: Scalable IP and First-Mover Advantage

From a private equity and investment standpoint, the acquisition is textbook accretive M&A:

• Revenue multiple: At ~$50M, Spitfire’s acquisition represents an estimated 3.8x multiple on its FY March 2024 turnover of £13.3M — modest for a business with elite brand equity and defensible IP.

• Synergy upside: The integration provides Splice with exclusive orchestral content, AI training data, and potential B2B licensing opportunities in gaming, film, and advertising.

• Land grab: MUSIC fund co-founder Matt Pincus described the current phase as a “land grab” for creative tools as AI transforms content production — and Splice is securing pole position.

MY VIEW: Owning the Stack

This acquisition is more than just catalogue expansion. It's a strategic stacking of the value chain — from AI-powered recommendation engines to the world’s most respected orchestral sample library. Splice is building a comprehensive platform where the content (Spitfire), the tooling (Splice UI), and the intelligence (AI curation) are all owned or controlled in-house.

As generative audio matures, owning the stack will be key. In this respect, Splice is not just surviving the AI wave — it's shaping it.

Bottom Line: In a world where the tools of creation are rapidly commoditising, Splice’s acquisition of Spitfire is a long-term bet on quality, curation, and vertical control. It’s a compelling blueprint for how digital platforms can evolve in the age of generative AI — without alienating the artists that power them.