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• **Universal Music Group is collaborating with AI music platform Udio and has ended its lawsuit against the startup. **
• **The two will launch a licensed AI music service next year. **
• The deal signals a major shift in how generative music could coexist with copyright law.

Universal Music Group has reached a peace treaty, or at least an armistice, in its war against AI-generated music. The world’s largest record label has settled its enormous copyright infringement lawsuit against AI music startup Udio. Not only that, but the two companies are launching a licensed, commercial AI music platform together at some point next year. The label behind many of the most listened-to songs in the world now wants to help you listen and make songs with AI.

UMG is singing in a very different key than it was a year ago after accusing Udio and other AI music developers of “mass infringement.” Now, while Udio’s existing product will stick around in a more limited fashion for the moment, the focus will be on collaborating to make a streaming-friendly platform where AI-generated songs can be customized, licensed, and shared legally and with artist royalties built in.

“These new agreements with Udio demonstrate our commitment to do what’s right by our artists and songwriters, whether that means embracing new technologies, developing new business models, diversifying revenue streams or beyond,“ UMG CEO Sir Lucian Grainge said in a statement. “[T]ogether, we can foster a healthy commercial AI ecosystem in which artists, songwriters, music companies and technology companies can all flourish and create incredible experiences for fans.”

AI music strikes a chord

Both companies are hyping their plan as more than a new app, but a major turning point in how music is created and heard. Think of it as the AI equivalent of Spotify’s impact on streaming music.

Streaming music services had been around for years, but it was Spotify that arguably made listening to songs that way the default choice for many people and mainstreamed the idea of tapping into a virtual collection of music at will rather than buying it physically or digitally. Opinions went from Napster panic to Spotify dominance as file sharing became common. Now there could be a service that sounds a lot like Spotify with a prompt box.

For everyday listeners, this could open the door to some weirdly wonderful new experiences. Want a dance-pop track with Korean lyrics and a mariachi horn section? Or a lullaby in the style of Bon Iver, sung by a ghostly children’s choir in a cave? Udio can already sort of make variations on those themes. But they become easier to share once it’s legal. And artists themselves might be the ones prompting the machine.

The key point here isn’t that AI music is new. Udio and competitors like Suno have been turning text prompts into full-length songs for a while. But the seal of legitimacy from a major rights holder is no small matter.

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That it happened after many months of legal battles is a testament to how well UMG thinks it and its artists will come out from the new service and how valuable Udio believes setting up a legitimate way to access UMG’s data and connections is to its plans.

“This moment brings to life everything we’ve been building toward – uniting AI and the music industry in a way that truly champions artists,“ Udio CEO Andrew Sanchez said. “Together, we’re building the technological and business landscape that will fundamentally expand what’s possible in music creation and engagement.”

Udio isn’t UMG’s only AI-related deal. It has recently made deals around AI with YouTube, TikTok, Meta, and others. The idea isn’t to chase pirates endlessly through the courts. It’s to stake a claim in how music gets made.

And the timing couldn’t be better. In the background, there’s increasing speculation that OpenAI is preparing its own audio-focused AI tool, a Sora for music. If that lands before Udio’s licensed platform launches, the entire ecosystem could shift again, with the same forces that reshaped video creation now taking aim at audio,

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Eric Hal Schwartz is a freelance writer for TechRadar with more than 15 years of experience covering the intersection of the world and technology. For the last five years, he served as head writer for Voicebot.ai and was on the leading edge of reporting on generative AI and large language models. He’s since become an expert on the products of generative AI models, such as OpenAI’s ChatGPT, Anthropic’s Claude, Google Gemini, and every other synthetic media tool. His experience runs the gamut of media, including print, digital, broadcast, and live events. Now, he’s continuing to tell the stories people want and need to hear about the rapidly evolving AI space and its impact on their lives. Eric is based in New York City.