“We’re seeing the future of music take shape in real time”: All three majors link licensing deal with AI start up
Plus Suno raise $250 million to develop “full-stack music ecosystem”
A major step forward has been taken towards the normalisation of AI-generated music with the announcement that the three major labels – Universal, Warners and Sony – have inked a licensing deal with an AI music streaming service called Klay, meaning that the startup can now train its model on many many thousands of recordings.
It’s been described by Universal as a "pioneering commercial ethical foundational model for AI-generated music that works in collaboration with the music industry and its creators." The idea is that Klay will not only develop a streaming platform but also tools to allow users to create AI songs in different styles.
Hours of fun, then. It is unclear though, whether artists will have any opt out of the service.
Meanwhile, it has also been announced that Warner has dropped its lawsuit against AI music firm Udio and struck a licensing deal with the firm to develop a “licensed AI music creation service”.
The service is set to launch next year and in common with the deal with Klay, will allow users to create their own legal AI tracks. However, it looks like artists will need to opt in to this service.
Warners say that the agreement will “create new revenue streams for artists and songwriters”, but it remains unclear how musicians will be paid through the service.
The other big AI music name, Suno, has also been busy. It’s been revealed that it has raised $250 million in a current funding round, money which they say will accelerate the development of its “full-stack music ecosystem, model, workstation, artist tools and community”.
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It comes after the firm launched Suno Studio in September. This is a generative audio workstation that includes multi-track editing with AI stem generation. It has also acquired WavTool, the first browser-based digital audio workstation, allowing it to repurpose the technology for its Suno Studio DAW.
“We’re seeing the future of music take shape in real time,” Mikey Shulman, CEO of Suno said in a statement. “In just two years, we’ve seen millions of people make their ideas a reality through Suno, from first-time creators to top songwriters and producers integrating the tool into their daily workflows. This funding allows us to keep expanding what’s possible, empowering more artists to experiment, collaborate, and build on their creativity. We’re proud to be at the forefront of this historic moment for music.”
So it appears to be all-systems-go regarding AI-generated music. The tech companies seem happy. Whether human artists end up smiling remains to be seen...

Will Simpson is a freelance music expert whose work has appeared in Classic Rock, Classic Pop, Guitarist and Total Guitar magazine. He is the author of 'Freedom Through Football: Inside Britain's Most Intrepid Sports Club' and his second book 'An American Cricket Odyssey' is due out in 2025.
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