Universal Music Group and Udio have transformed one of the music industry’s most contentious AI legal battles into a historic partnership.
Marking a striking about-face from last year’s high-stakes copyright lawsuit, UMG and the controversial AI music startup have reached a settlement and signed what they describe as “industry-first” licensing agreements, signaling a new phase of commercial cooperation between music rightsholders and generative music platforms.
The settlement ends a yearlong litigation effort that accused Udio of unlawfully training its generative AI models on copyrighted music without permission. At the time, Udio, alongside rival AI startup Suno, faced the possibility of billions in damages as major record labels alleged systemic copyright infringement.
Now, Udio is set to become the first AI music generator to operate in partnership with the world’s largest music company. The agreement includes both recorded music and publishing licenses, and will serve as the foundation for a new AI-driven music platform slated to launch next year, according to a jointly issued press release. The service will enable fans to stream, customize and share AI-generated music, all trained exclusively on licensed content.
“This moment brings to life everything we’ve been building toward – uniting AI and the music industry in a way that truly champions artists,” said Udio co-founder and CEO Andrew Sanchez. “Together, we’re building the technological and business landscape that will fundamentally expand what’s possible in music creation and engagement.”
Sir Lucian Grainge, Chairman and CEO of UMG, positioned the deal as a critical step in shaping a responsible future for AI in music.
“These new agreements with Udio demonstrate our commitment to do what’s right by our artists and songwriters, whether that means embracing new technologies, developing new business models, diversifying revenue streams or beyond,” he said. “We look forward to working with Andrew who shares our belief that together, we can foster a healthy commercial AI ecosystem in which artists, songwriters, music companies and technology companies can all flourish and create incredible experiences for fans.”
While full financial details of the settlement remain undisclosed, the deal appears to mark a pivot in UMG’s broader AI strategy. The company has previously inked AI-related deals with YouTube, Meta and TikTok, among others, but its latest with Udio is the first to authorize generative AI training on its vast music catalog.
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