Universal Music Group and AI track technology platform Udio have settled a copyright infringement lawsuit and agreed to staff up on new music creation and streaming platform, the 2 firms stated in a joint assertion.
Universal and Udio stated Wednesday that they reached a “compensatory legal settlement” in addition to new licensing agreements for recorded music and publishing that can “provide further revenue opportunities” for the file label’s artists and songwriters.
The rise of AI track technology instruments like Udio has disrupted the $20 billion music streaming trade. Record labels accuse the platforms of exploiting the recorded works of artists with out compensating them.
The deal is the primary since Universal, together with Sony Music Entertainment and Warner Records, sued Udio and one other AI track generator, Suno, final yr over copyright infringement.
“These new agreements with Udio reveal our dedication to do what’s proper by our artists and songwriters, whether or not meaning embracing new applied sciences, growing new enterprise fashions, diversifying income streams or past,” Universal CEO Lucian Grainge stated.
Financial phrases of the settlement weren’t disclosed.
Udio and Suno pioneered AI track technology know-how, which may spit out new songs based mostly on prompts typed right into a chatbot-style textual content field. Users, who do not want musical expertise, can merely request a tune within the fashion of, for instance, traditional rock, Nineteen Eighties synth-pop or West Coast rap.
The instruments have fueled debate over AI’s function in music whereas elevating fears about “AI slop” — mechanically generated low high quality mass produced content material — highlighted by the rise of fictitious bands passing for actual artists.
Udio and Universal, which counts Taylor Swift, Olivia Rodrigo, Drake, and Kendrick Lamar, amongst its artists, stated the brand new AI subscription service will debut subsequent yr.
It will let customers “customise, stream and share music responsibly on the Udio platform” and be trained on “approved and licensed music.”
Udio CEO Andrew Sanchez stated the deal “empowers artists and fans” and unites “AI and the music industry in a way that truly champions artists.”
© Copyright 2025 The Associated Press. All rights reserved. This materials might not be revealed, broadcast, rewritten or redistributed with out permission.

