Warner Music Settles With Udio, Signs Deal for Licensed AI Music Platform

Warner Music Group (WMG) has reached a “landmark” licensing deal with Udio as part of a settlement to resolve the label’s lawsuit against the artificial intelligence music company.

The deal comes weeks after Universal Music Group signed a similar agreement with Udio, under which the AI firm said it would relaunch its platform next year as a more limited subscription service that pays for music rights and gives artists the right to opt out.

Warner’s agreement will follow the same basic framework — with Udio paying a compensatory settlement to resolve Warner’s claims of past copyright infringement, and a licensing deal to allow the company to use the label’s music in the future.

“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,” WMG CEO Robert Kyncl said in a statement. “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.”

Andrew Sanchez, co-founder and CEO of Udio, said the Warner deal “marks a significant milestone in our mission to redefine how AI and the music industry evolve together.” The revamped Udio will let users make remixes, covers and new songs using the voices of artists that opt in, the companies said.

“This partnership is a crucial step towards realizing a future in which technology amplifies creativity and unlocks new opportunities for artists and songwriters,” Sanchez said, adding that it would “enable experiences where fans can create alongside their favorite artists” but in an environment where artists have “control.”

UMG, Sony Music and WMG teamed up last year to sue both Udio and Suno — the other leading AI music firm — for allegedly “trampling the rights of copyright owners” by exploiting vast numbers of songs to train its models. The cases are part of a trillion-dollar legal battle over whether AI firms can use copyrighted works like books, movies and songs to create platforms that spit out new ones.

Wednesday’s deal will not impact the separate case against Suno, which has pulled ahead of Udio as the market-leading AI music platform and has scored key wins like the success of AI-powered artists like Xania Monet. Suno announced on Wednesday that it had raised $250 million in a deal that values the company at $2.45 billion. A rep for Suno did not return a request for comment.

The Suno case will continue forward, as will Sony’s claims against Udio. But the deal certainly lends momentum for Udio to strike a deal with Sony, as the licensed AI music platform is not an exclusive partnership with either WMG or UMG. A rep for Sony did not immediately return a request for comment.

The planned Udio 2.0 will be substantially different than the current services offered by Udio and Suno, which allow users to generate entire songs based on a text prompt. The new service will be a “walled garden” in which users can experiment with AI and listen to the results, but they cannot download or share songs outside the service. It will also not feature the music or voice of any artists who opt out, a potentially large group of excluded songs in a world where artists are leery of AI.

In Wednesday’s announcement, Warner and Udio called those changes a “significant evolution” that was “shifting the company’s focus to a platform built in collaboration with artists and songwriters.” They said the “reimagined” service would only apply to choose to participate, and it would feature “expanded protections and other measures designed to safeguard the rights of artists and songwriters.”