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Major Labels in Talks to License AI Use of Music — Report
3 min read Major music labels including Warner, Universal, and Sony are in talks with AI startups Suno and Udio to license their catalogs for training generative AI models. This move could set a precedent for how artists are paid for AI-generated music, as the industry shifts from lawsuits to monetization. June 03, 2025 15:58
The world's biggest music companies are reportedly in advanced negotiations to license their music catalogs to AI startups, potentially paving the way for a formal framework around AI-generated music.
According to The Wall Street Journal and Bloomberg, Warner Music Group (WMG), Universal Music Group, and Sony Music Group are in talks with AI audio startups Suno and Udio. The goal: strike licensing deals that allow the AI firms to use copyrighted music to train generative models—legally and with compensation to artists and rights holders.
Why It Matters:
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Legal Pressure: Both Suno and Udio are currently facing lawsuits for copyright infringement.
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Industry Shift: These talks suggest the music industry is pivoting from litigation to monetization.
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Tech Expectations: Labels want more than just a check—they’re asking for:
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Fingerprinting tech to track usage.
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Attribution systems to credit and compensate artists.
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Creative input on how music is generated and what gets released.
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With regulatory uncertainty and investor scrutiny looming, these licensing discussions could mark a turning point. A finalized deal may set the first major precedent for how AI-generated music is governed, monetized, and credited.
Market Reaction:
📉 Shares of Warner Music Group dropped to their lowest point in two years following the news. WMG represents top artists like Ed Sheeran, Bruno Mars, and Dua Lipa, whose music could soon be legally powering the next wave of AI-generated tracks.
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