UMG cuts deal with AI upstart Udio
Universal Music Group and AI music platform Udio have settled their copyright lawsuit and will collaborate on a new licensed music service, set to launch in 2026. The companies will collaborate on a subscription-based platform that allows users to create, stream, and share music in a secure environment. Udio’s current product will remain online during the transition, and additional features such as fingerprinting, filtering, and other safeguards will be added.
The agreement includes a financial settlement and new licensing deals covering both recordings and publishing, creating fresh revenue for UMG artists and songwriters. UMG chair Lucian Grainge said the deal supports innovation while protecting creators. Udio CEO Andrew Sanchez called it a step toward uniting AI and the music industry in a way that empowers artists.
The settlement follows a lawsuit filed over a year ago by the Recording Industry Association of America on behalf of major labels, accusing Udio and Suno of mass copyright infringement. UMG continues legal action against Suno. The dispute intensified after labels alleged Udio illegally scraped YouTube videos to train its AI. Udio argued such downloads of public content do not violate copyright law, but labels called that interpretation flawed.
UMG says this marks its latest industry-first AI partnership, following deals with YouTube, TikTok, Meta, and others. Udio, launched in April 2024, was built by former Google DeepMind researchers and backed by Andreessen Horowitz, will.i.am, and Instagram co-founder Mike Krieger.
