Warner Music Group (WMG) has settled a copyright infringement lawsuit against AI music startup Udio and simultaneously entered into a licensing agreement for a new AI music creation service, the company announced on Wednesday. The collaborative platform is scheduled to launch in 2026.
According to WMG's press release, the forthcoming service will function as a "next-generation music creation, listening, and discovery platform" driven by generative AI models. These models will be trained exclusively on licensed and authorized music, aiming to create new revenue streams for artists and songwriters while protecting their intellectual property. The subscription-based service will enable users to generate remixes, covers, and new compositions utilizing the voices and works of participating artists and songwriters, with assurances from WMG that proper credit and compensation will be provided.
Robert Kyncl, CEO of WMG, stated in the press release, "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." He added that the collaboration aligns with WMG's efforts to "responsibly unlock AI's potential -- fueling new creative and commercial possibilities while continuing to deliver innovative experiences for fans."
Udio co-founder and CEO Andrew Sanchez remarked that the partnership represents a "crucial step towards realizing a future in which technology amplifies creativity and unlocks new opportunities for artists and songwriters." Sanchez further indicated the new platform would foster experiences where fans can create alongside artists in a controlled environment.
This settlement marks a notable development in the music industry's engagement with artificial intelligence technologies. WMG, alongside Universal Music Group and Sony Music Entertainment, had previously filed copyright infringement lawsuits against Udio and its competitor, Suno, last year. Both AI platforms facilitate song generation through text prompts. Reports suggest that Universal Music Group and Sony Music Entertainment are also in discussions to license their content to Udio and Suno.
In a related market development, Suno, another AI music startup, announced a $250 million Series C funding round earlier on Wednesday, valuing the company at $2.45 billion post-money. The investment round was led by Menlo Ventures, with additional participation from Nvidia's venture arm NVentures, Hallwood Media, Lightspeed, and Matrix.
