Universal Music Group and AI-powered music creation platform Udio have announced “industry-first” strategic agreements.
The companies have settled copyright infringement litigation and will collaborate on an “innovative, commercial music creation, consumption and streaming experience”, according to a statement.
“Today, UMG and Udio mark the next chapter of innovation between technology companies and rights-holders by working together towards unlocking new capabilities,” said the statement.
On behalf of labels, the Recording Industry Association of America launched copyright infringement claims against Udio and Suno in summer 2024. Today’s UMG announcement follows reports of licensing deals in the works between majors and AI firms.
In addition to the compensatory legal settlement, the new license agreements for recorded music and publishing will provide further revenue opportunities for UMG artists and songwriters.
The new platform, which will be launched in 2026, will be powered by new generative AI technology that will be trained on authorised and licensed music. The new subscription service will transform the user engagement experience, creating a licensed and protected environment to customise, stream and share music responsibly, on the Udio platform.
These new agreements with Udio demonstrate our commitment to do what’s right by our artists and songwriters, whether that means embracing new technologies, developing new business models, diversifying revenue streams or beyond
Sir Lucian Grainge
“We couldn’t be more thrilled about this collaboration and the opportunity to work alongside UMG to redefine how AI empowers artists and fans,” said Andrew Sanchez, co-founder & CEO of Udio. “This moment brings to life everything we’ve been building toward – uniting AI and the music industry in a way that truly champions artists. Together, we’re building the technological and business landscape that will fundamentally expand what’s possible in music creation and engagement.”
Sir Lucian Grainge, chairman and CEO of UMG, said: “These new agreements with Udio demonstrate our commitment to do what’s right by our artists and songwriters, whether that means embracing new technologies, developing new business models, diversifying revenue streams or beyond. We look forward to working with Andrew who shares our belief that together, we can foster a healthy commercial AI ecosystem in which artists, songwriters, music companies and technology companies can all flourish and create incredible experiences for fans.”
Udio's existing product will remain available to users during the transition period. The service will be amended in multiple ways, including fingerprinting, filtering, and other measures, before the launch of the updated service.
UMG noted that it has played a key role in fostering AI’s potential for music. It was the first company to enter into AI-related agreements with YouTube, TikTok, Meta, KDDI, Klay Vision, BandLab, Soundlabs and Pro-Rata, among others.
FOLLOW 
