Warner Music Group, Universal Music Group, and Sony Music Group are in talks with AI startups Suno and Udio over the use of their music. Reports from The Wall Street Journal and Bloomberg reveal these negotiations aim to monetize AI-generated music.
The music giants are pushing for licensing deals to ensure they receive compensation when their catalog is used to train generative AI models. Shares of Warner Music Group dipped following the news, hitting a two-year low.
The companies want Suno and Udio to create technology for tracking music usage. They expect to be involved in decisions around which songs are selected for AI development. 
Both Suno and Udio are currently facing copyright infringement lawsuits. They argue they are not infringing on any music business. However, industry pressure and a confusing regulatory landscape are driving them to seek an agreement.
A potential deal could set major precedents for how songs are utilized in AI and how artists are compensated for AI-generated remixes.
Warner Music, which represents big names like Ed Sheeran, Bruno Mars, and Dua Lipa, is closely monitoring the outcome.
