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In Brief

Posted:

6:52 AM PDT · June 2, 2025

Universal Music Group, Warner Music Group, and Sony Music Entertainment are in talks to license their work to AI startups Udio and Suno, according to a new report from Bloomberg. The deals would set forth a framework for how AI companies compensate artists for their work.

The record labels are pushing to receive a small amount of equity in Suno and Udio.

Udio and Suno allow aspiring music artists to receive an audio recording via prompts that describe sounds or songs, such as “a modern country ballad about unrequited love.”

Any deal would help to settle lawsuits between the music companies and AI startups. The labels sued Udio and Suno last year for copyright infringement. Both sides are in talks to see if they can agree on terms, as opposed to continuing legal fights.

The music companies are pushing to get more control of the use of their work, while the AI startups want flexibility to experiment, the report notes.

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