Major Record Labels in Licensing Talks with AI Music Startups Udio and Suno

Major record labels, including Universal Music Group, Warner Music Group, and Sony Music Entertainment, are reportedly engaged in licensing discussions with AI music startups Udio and Suno. According to a report by Bloomberg, these negotiations aim to establish a framework for compensating artists for their work used in AI-generated music.

A key aspect of these discussions involves the record labels seeking a small equity stake in both Suno and Udio. This move highlights the labels’ interest in not only receiving compensation but also participating in the potential future success of these AI platforms.

Udio and Suno are known for their innovative platforms that enable users to create audio recordings by simply inputting prompts that describe desired sounds or songs. For example, a user might request “a modern country ballad about unrequited love,” and the AI would generate a corresponding musical piece.

These licensing talks could potentially resolve ongoing legal disputes between the music industry and AI music startups. Last year, the labels initiated lawsuits against Udio and Suno, alleging copyright infringement. The current discussions represent an effort to find mutually agreeable terms and avoid protracted legal battles.

Reportedly, the music companies are advocating for greater control over how their copyrighted material is utilized by AI, while the AI startups are seeking the flexibility to experiment and innovate within their respective platforms. Finding a balance between these competing interests is crucial for reaching a successful licensing agreement.