Universal Music Group And Udio Announce First Strategic Agreements For Licensed AI Music Creation Platform

In Brief

UMG has settled copyright disputes with Udio and launched agreements to develop a licensed, AI-powered music creation and streaming ecosystem.

Music entertainment company Universal Music Group (UMG) announced the formation of strategic agreements with AI-driven music creation platform Udio.

The firm specializes in creating AI tools designed to empower both musical artists and their audiences. By integrating AI technology with partnerships across the music industry, the company aims to enhance support for musicians and broaden the ways fans interact with music and artists.

The new agreement resolved prior copyright infringement litigation and established a collaborative framework to develop a new commercial music creation, consumption, and streaming experience.

Alongside the legal settlement, the newly negotiated license agreements for recorded music and publishing are expected to generate additional revenue opportunities for UMG artists and songwriters

The forthcoming platform, scheduled for launch in 2026, will leverage advanced generative AI technology trained exclusively on authorized and licensed music. The subscription service is designed to transform user engagement, offering a licensed and protected environment where music can be customized, streamed, and shared responsibly through the Udio platform.

According to the announcement, during the transition period, Udio’s existing product will remain accessible to users, with content controlled within a secured environment. The service will be enhanced with measures such as fingerprinting, filtering, and other protective systems prior to the launch of the updated platform.

Udio’s Sudden Changes Spark Concerns Over Creative Freedom

UMG has long been at the forefront of exploring AI’s potential in the music industry, having previously established AI-related agreements with major companies including YouTube, TikTok, Meta, KDDI, KLAY Vision, BandLab, Soundlabs, and Pro-Rata. The collaboration with Udio represents a continuation of UMG’s efforts, aiming to unlock new technological capabilities and opportunities for rightsholders and music creators alike.

Much like the ongoing conflicts between journalism and AI, UMG is pivoting from adversary to collaborator—potentially setting a new precedent for how major labels engage with AI music

Yet Udio’s sudden shift blindsided its community, stripping away long‑cherished creative freedoms overnight as users found downloads disabled and key features revoked without warning. This stark contrast between strategic alignment and abrupt disruption highlights the risks of transitioning from innovation to control in a nascent creative ecosystem.

Labels Vs. AI Music Platforms: A Shift Toward Licensing And Revenue-Sharing Frameworks

Over 2024 major labels, including UMG, Sony Music Entertainment and Warner Records, filed lawsuits against AI music platform startups, accusing them of “mass copyright infringement” by training on sound recordings without permission

Independent artists have also joined the action: a country singer Tony Justice and his label 5th Wheel Records Inc. filed proposed class‑actions against Suno and Udio in 2025, arguing that smaller creators are “left out” of major negotiations and deserve representation and compensation.

All the instances show a broader shift–from confrontation between legacy rightsholders and AI startups, toward negotiated frameworks that embed licensing, revenue sharing and partnerships. The outcomes also suggest an industry‑wide recognition that generative AI in music cannot be ignored, but its integration will require new business models, rights‑management practices and transparency frameworks.