The three major labels — Universal Music Group, Sony Music, and Warner Music Group — and their publishing arms have all struck individual licensing deals with AI music startup Klay.
Klay is a music technology company building a streaming platform that allows users to remake songs using AI. This deal makes Klay the first AI company to ink licensing agreements with all three record companies, enabling the startup to train its interactive “Large Music Model” on thousands of tracks.
According to a press release, this deal will help Klay “further evolve music experiences for fans, leveraging the potential of AI, while fully respecting the rights of artists, songwriters, and rightsholders.”
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Multiple label execs celebrated the deal in their own statements. Warner Music Group’s executive vice president and chief digital officer, Carletta Higginson, praised Klay’s “right approach” to AI as both expanding “artistic possibilities and preserv[ing] the value of music.”
Universal Music Group’s executive vice president, Michael Nash, shared a similar sentiment upon beginning a partnership with Klay last year, stating the label was excited to “explore new opportunities and ethical solutions for artists and the wider music ecosystem, advancing generative AI technology in ways that are both respectful of copyright and have the potential to profoundly impact human creativity.”
In 2024, all three major labels filed copyright infringement lawsuits against the AI startups Suno and Udio. However, UMG and WMG have since reached separate partnership agreements with Udio.
Under their deal, UMG and Udio will launch a collaborative platform in 2026, allowing signed artists and songwriters to opt in. Warner also plans to launch a licensed AI-powered song creation platform with Udio next year.
While labels are busy making deals, many artists have spoken out against AI. For example, Paul McCartney recently joined more than 1,000 UK artists in contributing to Is This What We Want?, a silent album protesting their government’s AI copyright laws.