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US Tech & AI

Universal partners with AI startup Udio after settling copyright suit

By Eric October 30, 2025

In a groundbreaking move for the music industry, Universal Music Group (UMG) has announced strategic agreements with AI startup Udio to settle ongoing copyright infringement litigation and license music for a new AI-powered music platform. This initiative marks a significant step as the music sector navigates the complexities of integrating artificial intelligence into its business model. UMG, home to some of the world’s most prominent artists, including Ariana Grande, Taylor Swift, and Bad Bunny, aims to leverage this partnership to enhance revenue opportunities for its artists and songwriters. The new platform, which is set to launch as a subscription service next year, promises to revolutionize how users engage with music, allowing creators to customize, stream, and share their work in innovative ways.

The backdrop of this agreement is rooted in UMG’s previous legal actions against Udio and another startup, Suno, which were accused of “en masse” copyright infringement. This lawsuit highlighted the industry’s growing concern over how AI technologies can potentially exploit copyrighted material without proper licensing. With the new deal, UMG not only seeks to address these legal challenges but also to capitalize on the burgeoning AI music market, which is rapidly gaining traction. The existing Udio music maker, which allows users to create new songs using simple prompts, will continue to operate during this transition, albeit with enhanced security measures, including content fingerprinting to protect intellectual property. As the music landscape evolves, this partnership exemplifies how traditional industry players are beginning to embrace AI, paving the way for a future where technology and creativity coexist harmoniously.

With this development, UMG is positioning itself at the forefront of the AI music revolution, indicating that more licensing agreements with other tech companies could be on the horizon. As the industry grapples with the implications of AI, these strategic partnerships may redefine the relationship between artists, songwriters, and technology, ensuring that creators are compensated fairly while also fostering innovation in music creation and distribution. The exact pricing details for the new platform remain undisclosed, but the anticipation surrounding its launch suggests a significant shift in how music is produced and consumed in the digital age.

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Ariana Grande is one of Universal Music Group’s most popular artists.

Universal Music Group
says
it has made “industry-first strategic agreements” to “settle copyright infringement litigation” with AI startup Udio and license music for a new AI-powered music platform. The move is
one of several anticipated licensing deals expected
to land in the next few weeks as the sector grapples with how to handle AI. 

The deal includes some form of compensation and “will provide further revenue opportunities for UMG artists and songwriters,” Universal says. Udio,
the company behind “BBL Drizzy
,” will launch the platform as a subscription service next year. Universal, alongside other industry giants Sony and Warner, sued Udio and another startup Suno for “en masse” copyright  infringement last year. 

Universal — whose roster includes some of the world’s biggest performers like Taylor Swift, Bad Bunny, and Ariana Grande — says the new tool will “transform the user engagement experience” and let creators customize, stream, and share music. There’s no indication of how much it will cost yet. 

Udio’s existing music maker, which
lets you create new songs with a few words
, will remain available during the transition, though content will be held “within a walled garden” and security measures like fingerprinting will be added.

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