AI-generated music has been flooding streaming providers and there’s a wave of AI singers and bands that don’t exist in actual life.
Printed On 20 Nov 2025
The world’s largest music labels have struck AI licensing offers with a little-known startup named Klay Imaginative and prescient, the businesses have mentioned, the most recent in a collection of offers that underlines how the expertise is shaking up the music trade’s enterprise mannequin.
Warner Music Group, Common Music Group and Sony Music Leisure, and their publishing arms, all signed separate agreements with Klay, in line with an announcement posted on Warner’s web site on Thursday.
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It comes a day after Warner inked two different offers involving synthetic intelligence, with startups Udio and Stability AI.
There have been few particulars launched concerning the agreements or about Klay, which is predicated in Los Angeles, and what it does.
The deal phrases will assist Klay “additional evolve music experiences for followers, leveraging the potential of AI, whereas totally respecting the rights of artists, songwriters, and rightsholders,” the announcement mentioned. Klay has been working with the music trade on a licensing “framework for an AI-driven music expertise” and has constructed a “massive music mannequin” skilled solely on licensed music.
AI-generated music has been flooding streaming providers amid the rise of chatbot-like track mills that immediately spit out new tunes based mostly on prompts typed by customers with none musical data. The artificial music growth has additionally resulted in a wave of AI singers and bands which have climbed the charts after racking up thousands and thousands of streams, although they don’t exist in actual life.
Warner, Common and Sony had final yr sued Suno and Udio, makers of two standard AI track era instruments, accusing them of exploiting the recorded works of artists with out compensating them. However there are indicators that the disputes are being resolved via negotiation.
Warner, which represents artists together with Ed Sheeran and Dua Lipa, mentioned Wednesday that it resolved its copyright infringement litigation in opposition to Udio. The 2 firms mentioned they’re teaming as much as develop Udio’s licensed AI music creation service set to launch in 2026 that may enable customers to remix tunes by established artists.
They supplied no monetary particulars on their settlement, which incorporates Warner’s recording and publishing companies, however it would create “new income streams for artists and songwriters, whereas guaranteeing their work stays protected.”
It’s just like an settlement that Common Music Group signed final month with Udio, which triggered a backlash as a result of Udio stopped customers from downloading the songs they created.
Udio mentioned it would stay a “closed-system” because it prepares to launch the brand new service subsequent yr. If artists and songwriters select to let their works be used, they’ll be credited and paid when customers remix or cowl their songs, or make new tunes with their voices and compositions, the businesses mentioned.
Warner mentioned this week that it was working with Stability AI on growing “professional-grade instruments” for musicians, songwriters and producers.
On Wall Avenue, Sony’s inventory was down 2.3 % in noon buying and selling. Warner Music Group was down 2 % and Common Music Group was down by 0.3 %.
