The post AI music gets hot as Warner Music settles with Udio, Suno hits $2.45B valuation appeared on BitcoinEthereumNews.com.

Warner Music Group has settled a copyright lawsuit with AI firm Udio, while rival company Suno announced a $250 million funding round, which brought its valuation to $2.45 billion. The announcements, which came on the same day, show that major record labels and VCs are racing to capitalize on AI music technology after months of litigation, even as fundamental questions about copyright and fair use remain unresolved in the courts. Warner Music and Udio to launch a song creation platform  Warner Music’s settlement with Udio makes it the second major label to resolve its dispute with the Massachusetts-based company in less than a month, following Universal Music Group’s October agreement. The companies plan to jointly launch a subscription service in 2026 that will use licensed music from Warner’s catalog to power AI-generated remixes, covers, and new songs featuring participating artists’ voices. “We’re unwaveringly committed to the protection of the rights of our artists and songwriters, and Udio has taken meaningful steps to ensure that the music on its service will be authorized and licensed,” said Robert Kyncl, Warner Music Group’s chief executive officer. The settlement also includes provisions for artist protection, as they can choose to opt in to participate and will receive credit and compensation. Sony Music Group remains the last major label still litigating against Udio. Suno’s valuation rises Suno’s latest funding round was led by Menlo Ventures and also saw participation from other investors, including Nvidia’s NVentures, Lightspeed, Hallwood Media, and Matrix.  The raise values the company at $2.45 billion. The platform, which allows users to create full songs using text prompts and has become widely popular among first-time creators and professional producers alike, is also facing copyright litigation with Warner, Universal, and Sony Music.  Suno’s co-founder and chief executive officer, Mikey Shulman, said the latest capital…

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Filed under: News - @ November 20, 2025 12:26 am