Image by Brian Penny from Pixabay
Universal Music Group, Warner Music Group, and Sony Music Entertainment are reportedly in negotiations with AI music platforms Suno and Udio, discussing licensing fees and potential equity stakes in the startups. The talks, first reported by Bloomberg on June 1st, come less than a year after all three majors filed copyright infringement lawsuits against both companies.
Sources familiar with the discussions suggest the outcome could help settle ongoing legal disputes. The labels are said to be pushing for stronger control over the use of their recordings, while Suno and Udio are seeking flexibility and pricing that reflects their startup status. Neither the labels nor the AI platforms have commented publicly on the negotiations.
Both Suno and Udio use generative AI models that produce music from text prompts, allowing users to create original tracks in seconds. Last year, the major labels accused both companies of training their models on copyrighted material without authorization – claims that the startups haven’t denied, instead arguing that their use falls under U.S. fair use laws.
Despite the legal friction, investor interest remains high. Suno raised $125 million in 2024, led by Lightspeed Venture Partners, while Udio pulled in $10 million from Andreessen Horowitz and others. Suno has since partnered with Amazon, integrating into the latest version of Alexa, and brought Timbaland onboard as a strategic advisor.
These reported negotiations mirror a broader shift in how the music industry approaches AI. Licensing deals between tech companies and rights holders, such as OpenAI’s agreements with News Corp., Vox Media, and the Associated Press, indicate a growing willingness to find commercial middle ground, even in legally grey territory.
RIAA CEO Mitch Glazier underscored the industry’s stance last year, saying: “The music community has embraced AI… but we can only succeed if developers are willing to work together with us.”
Whether Suno and Udio will join that “responsible” camp remains to be seen. For now, all eyes are on the outcome of the talks, and whether they signal a truce or a new phase in the battle over AI-generated music.
