Major record labels are reportedly in licensing talks with AI firms Udio and Suno | TechCrunch
Jun 02, 2025 - techcrunch.com
Universal Music Group, Warner Music Group, and Sony Music Entertainment are negotiating with AI startups Udio and Suno to license their music. These deals aim to establish a framework for compensating artists when AI companies use their work. The record labels are seeking a small equity stake in the startups as part of the agreement. Udio and Suno provide aspiring artists with audio recordings based on descriptive prompts, such as specific song themes or styles.
The negotiations could resolve ongoing lawsuits filed by the music companies against Udio and Suno for copyright infringement. Both parties are exploring terms to avoid prolonged legal battles, with the music labels seeking greater control over their content's use and the AI startups desiring the freedom to innovate.
Key takeaways:
Universal Music Group, Warner Music Group, and Sony Music Entertainment are negotiating with AI startups Udio and Suno to license their work.
The deals aim to establish a compensation framework for artists whose work is used by AI companies.
The record labels are seeking a small equity stake in the AI startups as part of the agreement.
The negotiations could help resolve existing copyright infringement lawsuits between the music companies and the AI startups.
