Text-to-audio (TTA) systems have recently gained attention for their ability to synthesize general audio based on text descriptions. However, previous studies in TTA have limited generation quality with high computational costs. In this study, we propose AudioLDM, a TTA system that is built on a latent space to learn continuous audio representations from contrastive language-audio pretraining (CLAP) embeddings. The pretrained CLAP models enable us to train LDMs with audio embeddings while providing text embeddings as the condition during sampling. By learning the latent representations of audio signals without modelling the cross-modal relationship, AudioLDM improves both generation quality and computational efficiency. Trained on AudioCaps with a single GPU, AudioLDM achieves state-of-the-art TTA performance compared to other open-sourced systems, measured by both objective and subjective metrics. AudioLDM is also the first TTA system that enables various text-guided audio manipulations (e.g., style transfer) in a zero-shot fashion. Our implementation and demos are available at https://audioldm.github.io.