Home / Business and Economy / UMG and AI Startup Udio Reach Landmark Deal, Reshaping Music Industry's Future
UMG and AI Startup Udio Reach Landmark Deal, Reshaping Music Industry's Future
10 Nov
Summary
- UMG and AI music startup Udio reach settlement, ending copyright lawsuit
- Udio to launch new version in 2026 focused on remixing and fan engagement
- Deal seen as important step forward for the music industry's embrace of AI
On October 29, 2025, Universal Music Group (UMG) and AI music startup Udio announced a landmark deal, effectively ending UMG's part of the copyright infringement lawsuit against Udio. As part of the agreement, Udio will pivot its offerings, launching a new version of the service in 2026 that will focus on building fandom and encouraging engagement with existing music, rather than just offering brand-new songs.
The new Udio service will feature tools that allow users to remix, mash up, and riff on the songs of participating UMG artists. Users will also be able to create songs in the style of participating artists and use some artists' voices on songs. This shift represents an important step forward for the music industry's embrace of AI technology.
While the UMG-Udio deal is seen as a positive development, some industry professionals have expressed concerns about the potential challenges Udio may face, such as competition from other companies offering similar AI-powered features and the impact on artists whose catalogs are split between multiple labels. Nevertheless, the deal is widely viewed as an important milestone in the ongoing evolution of the music industry's relationship with AI.
