Why world's leading music labels are backing this AI start-up
What's the story
The world's leading music labels—Sony Music Entertainment, Warner Music Group, and Universal Music Group—have signed separate AI licensing agreements with a Los Angeles-based start-up called Klay Vision. The move highlights the growing impact of artificial intelligence on the business model of the music industry. The announcement was made on Warner's website on Thursday.
AI integration
Klay's role in evolving music experiences
The details of the agreements and Klay's exact role remain largely undisclosed. However, the announcement did say that these deals will enable Klay to "further evolve music experiences for fans." It also emphasized that this evolution would be done while fully respecting the rights of artists, songwriters, and rightsholders. The company has been working on a licensing framework for an AI-driven music experience and has built a large model trained solely on licensed music.
Market impact
AI-generated music's rise and industry response
The rise of chatbot-like song generators has led to a surge in AI-generated music on streaming services. This synthetic music boom has also given birth to virtual singers and bands that have taken the charts by storm, even though they don't exist in real life. Last year, Warner, Universal, and Sony sued Suno and Udio for allegedly using artists' recorded works without compensation. However, these disputes seem to be resolving through negotiations now.
Collaboration
Warner and Udio's partnership for AI music creation
Warner, which represents artists like Ed Sheeran and Dua Lipa, recently announced that it has settled its copyright infringement lawsuit against Udio. The two companies are now collaborating to launch Udio's licensed AI music creation service in 2026. This platform will let users remix songs by established artists while creating new revenue streams for them and songwriters while ensuring their work remains protected.
Backlash
Universal Music Group's agreement with Udio
Universal Music Group also signed a similar deal with Udio last month, which drew criticism after the platform barred users from downloading their created songs. Despite these controversies, Udio will remain a "closed-system" as it prepares to launch its new service next year. If artists and songwriters agree to let their works be used, they will be credited and compensated when users remix or cover their songs or create new tunes with their voices and compositions.