Universal Music Group Ends AI Lawsuit with Udio, Plans New AI Music Platform
Universal Music Group (UMG) has officially resolved its copyright dispute with AI music generator Udio, closing one of the most closely watched legal battles in the industry. The two companies confirmed the settlement late Wednesday night, revealing that they will now collaborate on an AI-driven music creation and streaming platform scheduled for release in 2026.
Turning Conflict Into Collaboration
The lawsuit, filed more than a year ago, accused Udio and fellow AI developer Suno of using millions of copyrighted songs from major record labels without authorization to train their systems. While Sony Music Group and Warner Music Group continue their cases against Udio, UMG’s decision to settle shifts the focus from litigation to innovation.
According to both companies, the forthcoming platform will use UMG’s licensed catalog to train its models, allowing users to generate and customize music in a fully authorized environment. Udio’s current platform will remain active in a restricted format until the new service goes live.
Photo Credit: Universal Music Group
A New Direction for AI and Music
Udio founder and CEO Andrew Sanchez said the partnership represents a step toward a more cooperative future between music and technology. He described the goal as building an ecosystem that allows creators and listeners to interact with music in new, responsible ways.
UMG chairman and CEO Lucian Grainge emphasized that the company remains focused on protecting its artists while finding ways to use AI ethically. He said the agreement reflects UMG’s broader approach to innovation, one that includes exploring new business models and technologies while ensuring that music creators are properly supported.
Expanding AI Partnerships
Alongside the Udio news, UMG also announced a new partnership with Stability AI to develop tools powered by responsibly trained generative AI. These tools are being designed to assist artists, producers, and songwriters in the creative process rather than replace them.
The announcement comes as the industry continues to address how AI should fit into the world of music creation and distribution. Spotify recently removed tens of millions of AI-generated songs it deemed inauthentic and confirmed plans to collaborate with major labels on new AI-based music features.
Michael Nash, UMG’s executive vice president and chief digital officer, reaffirmed the company’s stance that AI must be developed with respect for intellectual property. Stability AI’s CEO Prem Akkaraju added that the company aims to put “the artist at the center” of its AI tools, combining technology with creativity to shape music’s next chapter.
The Bigger Picture
UMG’s agreement with Udio marks a turning point in how the music industry is choosing to engage with AI. Rather than standing solely in opposition, the settlement suggests that collaboration could be the path forward—one where innovation and artist rights can coexist.
As the new platform moves toward its 2026 launch, the industry will be watching closely to see whether UMG and Udio’s partnership becomes a model for how music and artificial intelligence can evolve together responsibly.
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