Sony, Warner and Universal sign AI music licensing deals with startup Klay

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LONDON (AP) — The world's biggest music labels have struck AI licensing deals with a little-known startup named Klay Vision, the companies said Thursday, the latest in a series of deals that underlines how the technology is shaking up the music industry ’s business model.

Warner Music Group, Universal Music Group and Sony Music Entertainment, and their publishing arms, all signed separate agreements with Klay, according to an announcement posted on Warner's website.

It comes a day after Warner inked two other deals involving artificial intelligence, with startups Udio and Stability AI.

There were few details released about the agreements or about Klay, which is based in Los Angeles, and what it does.

The deal terms will help Klay "further evolve music experiences for fans, leveraging the potential of AI, while fully respecting the rights of artists, songwriters, and rightsholders,” the announcement said. Klay has been working with the music industry on a licensing “framework for an AI-driven music experience" and has built a “large music model” trained only on licensed music.

AI-generated music has been flooding streaming services amid the rise of chatbot-like song generators that instantly spit out new tunes based on prompts typed by users without any musical knowledge. The synthetic music boom has also resulted in a wave of AI singers and bands that have climbed the charts after racking up millions of streams, even though they don’t exist in real life.

Warner, Universal and Sony had last year sued Suno and Udio, makers of two popular AI song generation tools, accusing them of exploiting the recorded works of artists without compensating them. But there are signs that the disputes are being resolved through negotiation.

Warner, which represents artists including Ed Sheeran and Dua Lipa, said Wednesday that it resolved its copyright infringement litigation against Udio. The two companies said they're teaming up to develop Udio’s licensed AI music creation service set to launch in 2026 that will allow users to remix tunes by established artists.

They provided no financial details on their agreement, which includes Warner's recording and publishing businesses, but it will create “new revenue streams for artists and songwriters, while ensuring their work remains protected."

It's similar to an agreement that Universal Music Group signed last month with Udio, which triggered a backlash because Udio stopped users from downloading the songs they created.

Udio said it will remain a “closed-system” as it prepares to launch the new service next year. If artists and songwriters choose to let their works be used, they'll be credited and paid when users remix or cover their songs, or make new tunes with their voices and compositions, the companies said.

Warner said itthis week that it was working with Stability AI on developing “professional-grade tools” for musicians, songwriters and producers.