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Warner Music Settles With Udio, Paving Way for Licensed AI Music Platform in 2026

The agreement underscores a broader pivot by major labels toward paid, opt-in AI music services built on licensed catalogs.

Overview

  • WMG and Udio will launch a subscription platform next year using models trained on licensed recordings, with participating artists and songwriters credited and paid.
  • Udio says it will add protections such as fingerprinting and filtering, allow remixes, covers, and new songs using approved voices and compositions, and maintain a closed system during the transition.
  • Universal Music Group settled with Udio in October, leaving Sony Music as the only major still litigating against the startup.
  • Separately, Universal, Sony, and Warner each signed licensing deals with AI startup Klay, the first company to secure agreements with all three majors for a service trained solely on licensed music.
  • Rival AI platform Suno remains the target of major-label lawsuits even as it raised $250 million at a $2.45 billion valuation this week.