Warner Music Group (WMG) has settled a copyright infringement case with AI music startup Udio, the label announced on Wednesday. The two have also entered into a licensing deal for an AI music creation service that’s set to launch in 2026.
In its press release, WMG said that the “next-generation music creation, listening, and discovery platform” will be powered by generative AI models trained on licensed and authorized music.
The company says the platform will create “new revenue streams for artists and songwriters, while ensuring their work remains protected.”
The subscription service will allow users to make remixes, covers, and new songs using the voices of artists and compositions of songwriters who choose to participate. Warner Music Group says the platform will ensure artists and songwriters are credited and compensated.
“We’re unwaveringly committed to the protection of the rights of our artists and songwriters, and Udio has taken meaningful steps to ensure that the music on its service will be authorized and licensed,” said WMG CEO Robert Kyncl in the press release. “This collaboration aligns with our broader efforts to responsibly unlock AI’s potential — fueling new creative and commercial possibilities while continuing to deliver innovative experiences for fans.”
Artists signed to WMG include Lady Gaga, Coldplay, The Weeknd, Sabrina Carpenter, and more.
“This partnership is a crucial step towards realizing a future in which technology amplifies creativity and unlocks new opportunities for artists and songwriters,” said Udio co-founder and CEO Andrew Sanchez in the press release. “Our new platform will enable experiences where fans can create alongside their favorite artists and make extraordinary music in an environment that offers artists control and connection.”
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The settlement marks a significant shift in the music industry’s approach to AI. Warner Music Group, Universal Music Group, and Sony Music Entertainment sued Udio and rival AI music platform Suno last year for copyright infringement. Both platforms allow users to generate songs using AI-powered text prompts. Universal Music Group and Sony Music Entertainment are also reportedly in talks to license their work to Udio and Suno.
In a sign of investor confidence in AI music technology, Suno announced earlier on Wednesday that it has raised a $250 million Series C round at a $2.45 billion post-money valuation. The round was led by Menlo Ventures with participation from Nvidia’s venture arm NVentures, as well as Hallwood Media, Lightspeed, and Matrix.
