- Universal Music Group collaborates 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 deal 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 on AI-generated music. The world’s largest record label has settled its massive copyright infringement lawsuit against AI music startup Udio. Not only that, but the two companies will launch a licensed commercial AI music platform together at some point next year. The label behind many of the world’s most streamed 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 on a more limited basis for the time being, the focus will be on working together to create a streaming-friendly platform where AI-generated songs can be personalized, licensed and shared legally and with built-in artist royalties.
“These new agreements with Udio demonstrate our commitment to doing what’s right for our artists and songwriters, whether that means adopting new technologies, developing new business models, diversifying revenue streams or beyond,” Sir Lucian Grainge, CEO of UMG, said in a statement. “[T]Together, we can foster a healthy AI business ecosystem where artists, songwriters, music companies, and technology companies can all thrive and create incredible experiences for fans.
AI music strikes a chord
The two companies present their project as much more than a new application, but as a major turning point in the way music is created and heard. Think of it as the AI equivalent of Spotify’s impact on music streaming.
Streaming music services had been around for years, but it was arguably Spotify that made listening to songs this way the default choice for many people and mainstreamed the idea of tapping into 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 mainstream. There could now be a service that looks a lot like Spotify with a dialog box.
For everyday listeners, this could open the door to strangely wonderful new experiences. Want a dance-pop track with Korean lyrics and a mariachi horn section? Or a Bon Iver-style lullaby, sung by a choir of ghostly children in a cave? Udio can already sort of do variations on these themes. But they become easier to share once it’s legal. And it is perhaps the artists themselves who trigger the machine.
The key point here is not that AI music is new. Udio and competitors like Suno have been turning text prompts into full songs for some time. But gaining legitimacy from a major rights holder is no easy feat.
That this happened after several months of legal battles is a testament to how UMG believes it and its artists will fare from the new service and how valuable Udio believes establishing a legitimate way to access UMG’s data and connections is to its plans.
“This moment brings to life everything we’ve built: uniting AI and the music industry in a way that truly champions artists,” said Andrew Sanchez, CEO of Udio. “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 recently struck deals around AI with YouTube, TikTok, Meta and others. The idea is not to pursue pirates indefinitely in court. It’s about reclaiming the way music is created.
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 this happens 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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