Warner Music settles copyright lawsuit with Udio, signs deal for AI music platform

Warner Music Group (WMG) has resolved its copyright infringement lawsuit against AI music startup Udio, the company announced on Wednesday. As part of the resolution, the two sides have also signed a licensing agreement for a new AI-powered music creation platform scheduled to launch in 2026.

According to WMG’s announcement, the upcoming platform is described as a “next-generation music creation, listening, and discovery” experience powered by generative AI models trained on fully licensed, authorized music.

WMG says the platform is designed to create new revenue opportunities for artists and songwriters while maintaining strong protections over their work. The subscription service will allow users to generate remixes, covers, and original tracks using the voices of participating artists and the compositions of songwriters who opt in. Warner also emphasized that contributors will be credited and compensated for their participation.

“We’re unwaveringly committed to the protection of the rights of our artists and songwriters, and Udio has taken meaningful steps to ensure that the music on its service will be authorized and licensed,” WMG CEO Robert Kyncl said. “This collaboration aligns with our broader efforts to responsibly unlock AI’s potential — fueling new creative and commercial possibilities while continuing to deliver innovative experiences for fans.”

WMG represents prominent global artists, including Lady Gaga, Coldplay, The Weeknd, and Sabrina Carpenter.

Udio co-founder and CEO Andrew Sanchez said the partnership moves the industry closer to a future where technology enhances creativity. “Our new platform will enable experiences where fans can create alongside their favorite artists and make extraordinary music in an environment that offers artists control and connection,” he said.

The settlement marks a significant shift in the music industry’s stance toward AI. Last year, Warner Music Group, Universal Music Group, and Sony Music Entertainment filed copyright infringement lawsuits against Udio and fellow AI music generator Suno, both of which allow users to produce songs from text prompts. Universal and Sony are also reportedly in discussions to license their catalogues to Udio and Suno.

In a parallel sign of momentum for AI music technology, Suno announced earlier on Wednesday that it has closed a $250 million Series C round at a $2.45 billion valuation, led by Menlo Ventures with participation from Nvidia’s NVentures, Hallwood Media, Lightspeed, and Matrix.