Universal Music Group (UMG) has reached an agreement with Udio, one of the top AI music models on the market, to collaborate on a new commercial music creation, consumption, and streaming experience. As part of this deal, UMG will license its recorded music and publishing assets to Udio, creating a new revenue stream for the company and its signees.
The agreement also includes a compensatory legal settlement for UMG, which had sued Udio alongside Sony and Warner last year over allegations of copyright infringement on an "almost unimaginable scale." However, the two companies have now reached a deal that goes beyond just settling the lawsuit.
According to sources close to the deal, UMG artists and songwriters will be rewarded for both the training process of the AI model and for its outputs. The new collaborative platform is set to launch in 2026 and will be powered by cutting-edge generative AI technology trained on authorized and licensed music.
The agreement marks UMG's latest collaboration with an AI music company, following deals with KLAY, SoundLabs, and Pro-Rada in the past few years. Udio's co-founder and CEO, Andrew Sanchez, hailed the deal as a "game-changer" for the music industry, stating that it will empower artists and fans through new technologies.
Chairman and CEO of UMG, Lucian Grainge, emphasized the company's commitment to doing what's right by its artists and songwriters, saying that the deal demonstrates their desire to foster a healthy commercial AI ecosystem.
The agreement also includes a compensatory legal settlement for UMG, which had sued Udio alongside Sony and Warner last year over allegations of copyright infringement on an "almost unimaginable scale." However, the two companies have now reached a deal that goes beyond just settling the lawsuit.
According to sources close to the deal, UMG artists and songwriters will be rewarded for both the training process of the AI model and for its outputs. The new collaborative platform is set to launch in 2026 and will be powered by cutting-edge generative AI technology trained on authorized and licensed music.
The agreement marks UMG's latest collaboration with an AI music company, following deals with KLAY, SoundLabs, and Pro-Rada in the past few years. Udio's co-founder and CEO, Andrew Sanchez, hailed the deal as a "game-changer" for the music industry, stating that it will empower artists and fans through new technologies.
Chairman and CEO of UMG, Lucian Grainge, emphasized the company's commitment to doing what's right by its artists and songwriters, saying that the deal demonstrates their desire to foster a healthy commercial AI ecosystem.