Universal Music Group reaches a licensing agreement with AI Udio

Universal Music Group announced this week that it has reached a "groundbreaking strategic" licensing agreement with artificial intelligence ( AI ) music company Udio , thus ending a lawsuit that accused the cutting-edge startup of using copyrighted music to train its AI model.

"These new agreements with Udio demonstrate our commitment to doing what's right for our artists and songwriters, whether that's embracing new technologies , developing new business models, diversifying revenue streams, or beyond," Lucian Grainge , UMG 's president and CEO, said in a statement Wednesday in Santa Monica, California.

In 2026 , the companies will launch a new platform powered by cutting-edge generative AI technology, trained on authorized and licensed music.

"The new subscription service will transform the user experience , creating a safe and secure environment to personalize, stream and share music responsibly on the Udio platform ," the statement notes.

"Original" songs

Until now, Udio users could compose original songs —including vocals and instruments— from text prompts .

"The current Udio product will remain available to users during the transition period , with creations controlled within a closed environment and the service modified in various ways — including user identification, filtering and other measures — before the launch of the updated service," the statement said.

• However, the companies did not specify the financial terms of the agreement and the license agreements in the joint document .

On Thursday, UMG also announced a partnership with London-based Stability AI to develop AI- powered music creation tools for artists, producers, and songwriters.

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