Universal Music Group has announced its first licensing deal with AI music startup, Udio, marking a major step in how artificial intelligence is being integrated into the global music industry.
The partnership aims to launch a new AI-powered music creation platform in 2026. According to both companies, the yet-to-be-named platform will use generative AI technology trained only on authorised and licensed music.
They also confirmed that a previous copyright infringement case between them has been settled, though the financial details were not disclosed.
The deal comes amid growing fears among artists, writers, and developers that AI models trained on human-made content could one day replace them. Many music streaming services have already reported an increase in computer-generated songs.
In recent years, AI firms like OpenAI, Udio, and rival startup Suno have faced lawsuits from major record labels, accusing them of using copyrighted songs to train AI systems capable of imitating real artists.
John Phelan, head of the International Confederation of Music Publishers, described the situation as “the largest copyright infringement exercise that has been seen.”
Last year, the Recording Industry Association of America filed a lawsuit against Udio and Suno for similar copyright violations.
UMG CEO Lucian Grainge said the new deal offers a positive direction for the music industry, showing how technology and creativity can work together. He said it sets an example for “a healthy commercial AI ecosystem where artists, songwriters, music companies, and tech firms can all thrive.”
Talks are still ongoing between music companies and tech firms to set clearer licensing rules for AI-generated works.
