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Universal Music Group, Warner Music Group, and Sony Music Entertainment are negotiating license fees for their work with Suno and Udio. They also seek a small amount of equity in the two companies, which are leaders in using generative AI to create music. People familiar with the negotiation, who preferred to stay anonymous due to the sensitive nature of the talks, explained the reasons behind the discussions. They said that major music companies want to let AI startups Udio and Suno use their music, and this deal could set a precedent for how AI firms compensate recording artists for their work. AI companies raise conflict with media companies on copyrighted content  Udio and Suno help future music creators by allowing them to enter a description of a sound or song, such as “a modern country ballad about unrequited love,” and then get an audio recording back. To make this happen, the companies must teach their software using large datasets filled with millions of information. This requires a lot of music.  The intention raised by AI companies to train their large language models on copyrighted work has sparked a war between AI and media companies. AI companies have fought with major media companies over whether they must pay to train their large language models on copyrighted work. They have argued that the training is permitted under fair use, while rights holders say they need to be paid. The New York Times Co. sued OpenAI, which has struck licensing deals with companies like News Corp., the Associated Press, and Vox Media. To solve this, the music companies and the AI startups are negotiating to find common ground and try to avoid fighting it in court. The talks are unfolding on parallel tracks, providing a race to see whether a label or an…

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Filed under: News - @ June 2, 2025 1:09 am