AI Companies in Music Licensing Talks with Universal, Warner, and Sony

Universal Music Group, Warner Music Group, and Sony Music Entertainment are negotiating license fees and equity with AI companies Udio and Suno, which use generative AI to create music. The music companies want to let AI startups use their music, setting a precedent for how AI firms compensate recording artists. Talks are underway to find common ground and avoid legal battles.

Universal Music Group, Warner Music Group, and Sony Music Entertainment are currently engaged in negotiations with AI companies Udio and Suno, aiming to license their music libraries and potentially acquire small equity stakes in the AI startups. The discussions, which have been ongoing since late May 2025, involve setting a compensation framework for artists and resolving ongoing copyright infringement lawsuits filed by the Recording Industry Association of America (RIAA) against Suno and Udio in June 2024 [1].

The negotiations are significant as they could establish a precedent for how AI firms compensate recording artists for using their work. The major labels are pushing for license fees and a small amount of equity in Suno and Udio, which are leaders in using generative AI to create music [2]. The talks are part of a broader industry effort to navigate the complex landscape of AI-generated content and address concerns over unauthorized use of copyrighted material [3].

The discussions are not without challenges. The labels are seeking more control over how their work is used, while Udio and Suno are looking for flexibility to experiment and affordable deals suitable for startup companies. The talks are ongoing, and neither the AI companies nor the major labels have issued official statements regarding these negotiations [1].

The current talks reflect a growing recognition of the need for sustainable and equitable solutions as AI technology continues to advance. The music industry is seeking a more integral and long-term role in the evolving AI music landscape. If successful, these negotiations could set a precedent for future collaborations between AI firms and the music industry [3].

References:
[1] https://winbuzzer.com/2025/06/01/ai-music-copyright-suno-udio-labels-in-licensing-talks-xcxwbn/
[2] https://www.allsides.com/news/2025-06-01-1115/technology-record-labels-talks-license-music-ai-firms-udio-suno
[3] https://www.cryptopolitan.com/music-labels-negotiate-with-ai-startups/