Warner Music Group (WMG) has settled a copyright infringement case with its AI music startup Audiothe label was announced on Wednesday. The two have also struck a licensing deal for an AI-powered music creation service set to launch in 2026.
In one press releaseWMG said its “next-generation music creation, listening and discovery platform” will be powered by artificial intelligence production 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 the artists and compositions of the songwriters who choose to participate. Warner Music Group says the platform will ensure artists and songwriters are credited and compensated.
“We are unwaveringly committed to protecting the rights of our artists and songwriters, and Udio has taken substantial steps to ensure that the music on its service is authorized and licensed,” WMG CEO Robert Kyncl said in the press release. “This partnership aligns with our broader efforts to responsibly unlock the potential of artificial intelligence – 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 critical step toward realizing a future in which technology empowers creativity and unlocks new opportunities for artists and songwriters,” Udio co-founder and CEO Andrew Sanchez said in the press release. “Our new platform will enable experiences where fans can co-create with their favorite artists and make great music in an environment that gives artists control and connection.”
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The settlement marks a major 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 create songs using AI-powered text messages. Universal Music Group and Sony Music Entertainment are also in talks to license their work to Udio and Suno.
In a sign of investor confidence in AI music technology, Suno announced earlier Wednesday that it had raised a $250 million Series C round at a post-money valuation of $2.45 billion. The round was led by Menlo Ventures with participation from Nvidia’s venture arm NVentures, as well as Hallwood Media, Lightspeed and Matrix.
