Warner Music Group has settled a copyright infringement case with the AI music startup Udio. The two companies have also entered into a licensing agreement to develop a new AI music creation service scheduled to launch in 2026.
According to a press release, Warner Music Group described the upcoming platform as a next-generation music creation, listening, and discovery service. This platform will be powered by generative AI models that are trained exclusively on licensed and authorized music. The company stated that the service is designed to create new revenue streams for artists and songwriters while ensuring their work remains protected.
The subscription-based service will enable users to create remixes, covers, and new songs using the voices and compositions of artists and songwriters who choose to participate. Warner Music Group has committed that the platform will ensure all participating creators are properly credited and compensated for their work.
Warner Music Group CEO Robert Kyncl commented on the collaboration, emphasizing the company’s commitment to protecting the rights of its artists and songwriters. He noted that Udio has taken meaningful steps to ensure all music on its service is authorized and licensed. Kyncl described the partnership as part of broader efforts to responsibly unlock the potential of artificial intelligence, aiming to fuel new creative and commercial possibilities while delivering innovative experiences for music fans.
Artists signed to Warner Music Group include Lady Gaga, Coldplay, The Weeknd, and Sabrina Carpenter.
Udio co-founder and CEO Andrew Sanchez also expressed his views, calling the partnership a crucial step toward a future where technology amplifies creativity and unlocks new opportunities for artists and songwriters. He stated that the new platform will allow fans to create music alongside their favorite artists in an environment that offers artists control and connection.
This settlement represents a notable shift in the music industry’s approach to AI. Previously, Warner Music Group, along with Universal Music Group and Sony Music Entertainment, had sued both Udio and its rival AI platform Suno for copyright infringement. These platforms allow users to generate songs through AI-powered text prompts. Reports indicate that Universal Music Group and Sony Music Entertainment are also in discussions to license their music catalogs to Udio and Suno.
In a related development showing investor confidence in AI music technology, Suno announced it has raised a two hundred fifty million dollar Series C funding round. This investment gives the company a post-money valuation of two point four five billion dollars. The funding round was led by Menlo Ventures and included participation from Nvidia’s venture arm NVentures, as well as Hallwood Media, Lightspeed, and Matrix.