Warner Music Group and Audio have reached an agreement in a music copyright fight

Warner Music Group said on Wednesday it has reached an agreement with artificial intelligence startup YouTube, ending a legal battle over concerns that copyrighted music is being used to train AI models.

Under an agreement, Udio will release a platform next year using AI models trained on licensed and authorized music, the New York-based companies said. The companies added that music can include content from WMG’s publishing business, providing new revenue for artists and songwriters who choose to opt-in.

Udio declined to say which artists will be involved in its new platform, and WMG did not return a request for comment. WMG’s list of artists includes Ed Sheeran, Fleetwood Mac and Madonna.

The startup’s current platform allows users to write text prompts and create songs using AI. The new version, which is expected to launch next year, will allow users to create remixes, covers and new songs with the voices of artists and compositions by singers who participate and those artists and writers will be credited and paid.

“This collaboration aligns with our broader efforts to responsibly unlock the potential of AI – fueling new creative and commercial possibilities while continuing to deliver innovative experiences to fans,” WMG CEO Robert Kinkel said in a statement.

WMG, Universal Music Group (UMG), Sony Music Entertainment and other music businesses sued Udio last year. In the lawsuit, Yudev was accused of using hits like The Temptations’ “My Girl” to create a similar melody called “Sunshine Melody”. UMG owns the copyright to “My Girl”.

Udio said millions of people have used Udio since its launch in 2024, but did not specifically disclose how many downloads or website users it has.

UMG formed with Audi last month. Udio declined to disclose the terms of the UMG settlement. The tech company also did not provide financial details about its platform’s collaboration with WMG, or which artists will be involved.

“The collaboration with WMG marks a significant milestone in our mission to see how AI and the music industry evolve together,” said Andrew Sanchez, co-founder and CEO of Udio, in a statement. “This partnership is an important step toward realizing a future in which technology fosters creativity and opens up new opportunities for artists and songwriters.”

The advancement of artificial intelligence in the arts has led to a range of emotions in the entertainment industry – from fear of job displacement to a desire for new ways to test bold ideas in music videos and low-budget musical experiences.

After the UMG-Udio deal was announced, Jordan Bromley, a board member at the nonprofit Music Artists Coalition and president of Manatee Entertainment, said he was “cautiously optimistic but stressed about the details.”

Ron Gubitz, executive director of the Coalition of Music Artists, said the contract announcements “lack the critical detail songwriters and artists deserve.”

“The question remains whether these deals will deliver the most important things that artists deserve: satisfaction, clarity and compensation,” Gobitz said in a statement.