The move could set a precedent for how music artists are compensated in the AI era
Major record labels Universal, Warner and Sony are discussing licensing their catalogs to AI music startups Udio and Suno, aiming to resolve ongoing copyright lawsuits.
Although none of the companies have acknowledged the talks, the move could set a precedent for how artists are compensated in the AI era.
Music creators can type in prompts on Udio and Suno, which in turn generates audio recordings in the mentioned genre. However, these startups need to train their AI music models on datasets containing millions of music pieces and information.
Labels have sued the companies for copyright infringement, seeking up to $150,000 per misused work. Instead of taking it to court, they are now negotiating favorable deals.
The potential deals would include license fees and equity stakes in the AI music startups.
The outcome could shape how creative industries adapt to AI, just as they once did with streaming.