Critiqs

Record Labels and AI Startups Cut Deals Over Song Creation

record-labels-and-ai-startups-cut-deals-over-song-creation
  • Major record labels are negotiating licensing deals with AI music startups Udio and Suno.
  • Labels want compensation and ownership control, while startups seek creative freedom and access.
  • A licensing compromise could halt lawsuits and shape how AI-generated songs use existing music.

Major record labels are quietly negotiating with artificial intelligence music startups, and the outcome could shape the future of music creation.

Universal Music, Warner Music, and Sony Music have started discussions with two innovators in the AI music field, Udio and Suno. Both startups offer tools that let users generate original songs simply by describing their vibe, genre, or story line.

As these negotiations unfold, the heart of the debate is about fairness and ownership. AI companies want the freedom to develop ever more creative tools. The record labels want their artists compensated and their music catalogues respected.

Music Meets Machine

Label executives are not only asking for licensing fees, but they are also interested in acquiring small stakes in these startups. This path could give them skin in the game if the technology hits it big.

Talks began after lawsuits erupted last year. The labels accused Udio and Suno of taking their copyrighted work to train their artificial intelligence, setting off a high-stakes fight over legality and creativity in the digital age.

Right now, both sides see a possible compromise. A licensing agreement could bring the legal battles to a halt, offering clarity around how artists and rights holders are paid when AI generates new music rooted in their original work.

For Udio and Suno, working with the labels instead of clashing in court would unlock a trove of music for training and collaboration. The startups want the flexibility to push boundaries, to see what happens when machines and musicians team up.

The record labels, meanwhile, are trying to carve out some power over how their content is used in emerging technology. By seeking both financial stakes and some regulatory guardrails, they are aiming to protect their existing business and gain a foothold in the world of AI-driven music partnerships.

As attorneys and executives weigh the risks and rewards, music fans and artists are left watching. The outcome of these talks will likely influence how creative people and tech companies interact for years to come.

For now, the soundtrack of this negotiation is a mix of innovation and anxiety, with the future of music technology itself in the balance.

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