Warner Music Group (WMG) has settled a copyright infringement lawsuit with AI music startup Udio and signed a licensing deal for an AI music platform set to launch in 2026 (19/11).

The settlement marks a shift in the music industry’s approach to AI, as Warner, Universal, and Sony previously sued Udio and rival platform Suno last year for copyright infringement. Both platforms allow users to generate songs using AI-powered text prompts. Universal and Sony are also reportedly in talks to license their music to Udio and Suno.

Next-Generation AI Music Platform

The upcoming platform will allow users to create remixes, covers, and new songs using voices and compositions of participating artists and songwriters. WMG stated the service will be “powered by generative AI models trained on licensed and authorized music.”

“This collaboration aligns with our broader efforts to responsibly unlock AI’s potential, fueling new creative and commercial possibilities while continuing to deliver innovative experiences for fans,” said WMG CEO Robert Kyncl.

Benefits for Artists and Songwriters

The subscription service is designed to generate “new revenue streams for artists and songwriters, while ensuring their work remains protected,” according to WMG. Artists will be credited and compensated when their music is used on the platform.

Udio co-founder and CEO Andrew Sanchez added, “Our new platform will enable experiences where fans can create alongside their favorite artists and make extraordinary music in an environment that offers artists control and connection.”

Artists signed to WMG include Lady Gaga, Coldplay, The Weeknd, Sabrina Carpenter, and others.

Industry and Investment Implications

Investor confidence in AI music technology is growing. On the same day as the settlement announcement, Suno raised $250 million in a Series C funding round at a $2.45 billion post-money valuation. The round was led by Menlo Ventures with participation from Nvidia’s NVentures, Hallwood Media, Lightspeed, and Matrix.

PHOTO: BILLBOARD/UNIVERSAL MUSIC GROUP, UDIO

This article was created with AI assistance.