Record labels in conversations to license music for AI firms Udio, Suno | Company Business News

(Bloomberg) -Great music companies are in conversation to license their work on artificial intelligence -startups Udio and Suno, transactions that will establish a framework for how AI companies compensate the recording artists for their work, according to people who are familiar with the discussions. Universal Music Group, Warner Music Group and Sony Music Entertainment are raising license fees for their work and also receives a small amount of shares in Suno and Udio, two leaders under a harvest of companies using generative AI to help make music. Any agreement will help settle lawsuits between the two parties, say the people who refused to be identified because the discussions could fall apart. Udio and Suno enable prospective music creators to type in an assignment that describes a sound or song like “a modern country ballade about unanswered love” and receives a sound recording in exchange for it. The businesses must train their software on data sets consisting of millions of individual information. It means a lot of music. The most important music companies sued Udio and Suno last year and accused them of copyright infringement. The Recording Industry Association of America, a trade group for record companies, has violated as much as $ 150,000 per work, which could amount to billions of dollars. The music companies and the AI ​​artuPs talk to see if they can agree on conditions, rather than fighting in court. The negotiations take place parallel, and create some kind of kind to see which AI company and label will first conclude an agreement. The discussions are complicated because the labels have a greater control over the use of their work, while Udio and Suno seek flexibility to experiment and want offers at a price reasonable for starting companies. Udio and Suno did not respond to requests for comment. The three music companies declined to comment. Udio received $ 10 million last year from a group of investors including venture capital firm Andreessen Horowitz, while Suno raised $ 125 million in a round that includes Lightspeed Venture Partners. AI businesses have fought large media companies or they have to pay to train their large language models over copyrighted. They argued that the training was covered under fair use, while rights holders say they should be reimbursed. The New York Times Co. has sued Openai, who made licensing agreements with companies such as News Corp., The Associated Press and Vox Media. The music industry struggled with how to respond best to the rise of AI technology. Industry sales have grown over the past decade, but have not yet fully recovered from the damage caused in the early days of the Internet, when filing websites and pirate sales decimated. Record businesses have struggled every new technology, from file sharing to user-generated content to streaming. But streaming services such as Spotify Technology SA have contributed to reviving the industry. The industry has expressed a desire to protect its copyright, while also leaning in new technology. “The music community has embraced AI, and we are already working with responsible developers to build sustainable AI instruments centered on human creativity that puts artists and songwriters in control,” said RIAA CEO Mitch Glazier when it filed the matter. “But we can only succeed if developers are willing to work with us.” -With help from Rachel Metz. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP