- Universal Music Group is collaborating with music platform AI Udio and has ended its lawsuit against the startup.
- The two will launch a licensed AI music service next year.
- The agreement marks a major shift in how generative music could coexist with copyright law.
Universal Music Group has reached a peace treaty, or at least an armistice, in its war against AI-generated music. The world’s largest record label has settled its massive copyright infringement lawsuit against music startup AI Udio. Not only that, but the two companies will jointly launch a licensed AI music trading platform sometime next year. The label behind many of the world’s most played songs now wants to help you listen to and create songs with AI.
UMG is singing in a very different tone than a year ago after accusing Udio and other AI music developers of “massive infringement.” Now, while Udio’s existing product will remain in a more limited form for the time being, the focus will be on collaborating to create a streaming-compatible platform where AI-generated songs can be customized, licensed and shared legally and with artist royalties built in.
“These new deals with Udio demonstrate our commitment to doing the right thing for our artists and songwriters, whether that means adopting new technologies, developing new business models, diversifying revenue streams or more,” UMG chief executive Sir Lucian Grainge said in a statement. “[T]“Together, we can foster a healthy AI business ecosystem where artists, songwriters, music companies and technology companies can thrive and create amazing fan experiences.”
AI music strikes a chord
Both companies are promoting their plan as more than just a new app, but as a major turning point in the way music is created and listened to. Think of it as the AI equivalent of Spotify’s impact on music streaming.
Music streaming services had been around for years, but it was Spotify that arguably made listening to songs that way the default option for many people and introduced the idea of accessing a virtual collection of music at will rather than purchasing it physically or digitally. Opinions shifted from Napster panic to Spotify dominance as file sharing became common. Now there could be a service that looks a lot like Spotify with a prompt box.
For everyday listeners, this could open the door to strangely wonderful new experiences. Do you want a dance-pop track with Korean lyrics and a mariachi trumpet section? Or a Bon Iver-style lullaby, sung by a choir of ghostly children in a cave? Udio can now make variations on those themes. But they become easier to share once it’s legal. And the artists themselves could be the ones who drive the machine.
The key point here is not that AI music is new. Udio and competitors like Suno have been turning text messages into full songs for a while. But the seal of legitimacy of an important rights holder is no small matter.
That it happened after many months of legal battles is a testament to how well UMG believes it and its artists will come out of the new service and how valuable Udio believes it is to its plans to establish a legitimate way to access UMG’s data and connections.
“This moment brings to life everything we’ve been building: bringing AI and the music industry together in a way that truly champions artists,” said Udio CEO Andrew Sanchez. “Together, we are building the technology and business landscape that will fundamentally expand what is possible in music creation and engagement.”
Udio isn’t UMG’s only AI-related deal. It has recently closed AI deals with YouTube, TikTok, Meta and others. The idea is not to relentlessly pursue pirates through the courts. It is reclaiming how music is made.
And the timing couldn’t be better. In the background, there is growing speculation that OpenAI is preparing its own audio-focused AI tool, a Sora for music. If that comes before the launch of Udio’s licensed platform, the entire ecosystem could change again, with the same forces that reshaped video creation now targeting audio.
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