Universal Music Group (UMG) announced a strategic agreement with AI startup Udio to settle copyright infringement litigation and license music for an upcoming AI-based platform. The move marks one of the first industrywide settlements between a major music label and an AI company.
Udio, best known for creating “BBL Drizzy,” plans to launch the subscription service next year. The deal includes compensation and new revenue opportunities for UMG artists and songwriters. Universal, Sony, and Warner had sued Udio and another startup, Suno, last year for large-scale copyright violations.
UMG said the partnership will allow users to customize, stream, and share music through a secure system with fingerprinting technology, reflecting a broader industry shift toward AI licensing frameworks.
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