Universal Music partners with AI startup Udio after settling lawsuit

Universal Music Group has partnered with AI music startup Udio to launch a new AI-powered music platform, settling their copyright infringement lawsuit in the process. The deal marks a significant shift from litigation to collaboration in the music industry’s approach to artificial intelligence, potentially setting a precedent for how major labels will work with AI companies going forward.

What you should know: Universal describes this as an “industry-first strategic agreement” that resolves copyright litigation while creating new revenue opportunities for artists and songwriters.

• The partnership will launch as a subscription service next year, though pricing details haven’t been announced.
• Udio, the company behind the viral “BBL Drizzy” track, will power the platform’s AI music creation capabilities.

The big picture: This deal represents a major pivot from the adversarial relationship between major music labels and AI companies toward potential collaboration.

• Universal, Sony, and Warner had sued Udio and competitor Suno for “en masse” copyright infringement last year.
• The settlement includes compensation for Universal and establishes a framework for licensing music to AI platforms.

Key details: The new platform promises to “transform the user engagement experience” by allowing creators to customize, stream, and share AI-generated music.

• Udio’s existing music creation tool will remain available during the transition period.
• Content will be contained “within a walled garden” with added security measures like fingerprinting technology.

Who’s involved: Universal’s roster includes some of the world’s biggest performers like Taylor Swift, Bad Bunny, and Ariana Grande, giving the partnership significant star power.

Why this matters: This settlement could signal the beginning of broader licensing agreements between major labels and AI music companies, potentially reshaping how the industry handles AI-generated content while ensuring artists and labels receive compensation.