Universal Music Group, Warner Music Group, and Sony Music Entertainment are in talks with controversial AI music platforms Udio and Suno for licensing deals. The discussions aim to settle ongoing lawsuits against the startups over copyright infringement, according to Bloomberg.
The major labels are seeking license fees and a small equity stake in both companies. This push comes nearly a year after the labels sued Udio and Suno for allegedly using their music to train AI systems without permission.
Sources revealed that a potential agreement could resolve the lawsuits, although they warned that the talks might not succeed. Both Udio and Suno generate music with text prompts, creating complete audio tracks based on user requests. 
Last June, the three major labels claimed Udio and Suno broke copyright laws, stating, “AI companies…must abide by the laws that protect human creativity and ingenuity.” The startups have contended that their use of copyrighted material qualifies as “fair use.”
Negotiations are complex. Labels want “greater control over the use of their work.” Meanwhile, AI platforms are after “flexibility to experiment” and affordable deals.
Neither Udio nor Suno responded to Bloomberg‘s requests for comment, and the music majors declined to comment.
Suno raised $125 million from investors like Lightspeed Venture Partners, giving it a valuation of $500 million as of last year. Udio secured $10 million from Andreessen Horowitz, highlighting investor confidence despite legal hurdles.
The talks align with recent licensing agreements made by OpenAI with various media companies, suggesting industry movement toward mutually beneficial arrangements.
Mitch Glazier, CEO of the RIAA, noted, “The music community has embraced AI, and we are already partnering and collaborating with responsible developers to build sustainable AI tools centered on human creativity that put artists and songwriters in charge.”
“The music community has embraced AI, and we are already partnering and collaborating with responsible developers to build sustainable AI tools centered on human creativity that put artists and songwriters in charge.”
— Mitch Glazier, RIAA
Suno also faces a copyright infringement case in Germany from GEMA, the licensing body.
Despite its controversial reputation, Suno has made headlines, including a partnership with Amazon for AI-driven Alexa capabilities, and appointed Timbaland as a strategic advisor.
This situation continues to develop as the music industry seeks a balance between protecting artists and navigating the burgeoning world of AI-generated content.
