What music labels are Suno and Udio settling with?

Suno and Udio are settling with Universal Music Group and Warner Music Group.

How will AI music companies like Suno and Udio compensate artists?

They will pivot to fan engagement platforms or use licensed music for training their models, with users potentially paying for downloads.

When will AI music models need to be trained on licensed works?

By 2026, new models trained exclusively on licensed works will be launched.

Home / Business and Economy / AI Music Giants Ink Deals with Labels

AI Music Giants Ink Deals with Labels

5 Dec, 2025

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Summary

AI music firms Suno and Udio face lawsuits for copyright infringement.
Udio and Suno are settling with Universal Music Group and Warner Music Group.
Deals require AI models to be trained on licensed music by 2026.

AI music pioneers Suno and Udio are navigating a copyright crisis, settling major lawsuits with Universal Music Group and Warner Music Group. These agreements, effective by 2026, mandate that AI models must train exclusively on licensed music, signaling a shift towards artist compensation.

Udio will transition into a fan engagement platform, restricting creations to its "walled garden," while Suno can continue its current offerings but with licensed training data and user fees for downloads. Experts suggest Suno's deal may be more advantageous, though securing all necessary songwriter opt-ins presents an ongoing challenge.

The new framework aims to balance AI innovation with artist rights. However, the "opt-in" nature of these deals creates complexity, as even one songwriter's refusal can disqualify a song. The future success of AI music hinges on resolving these licensing intricacies and proving its value alongside human-created content.