Major Labels Announce Deal with AI Music Startup

Warner Music Group, Universal Music Group and Sony Music have all negotiated a licensing deal with Klay Vision Inc., an AI music technology company. WMG’s signing yesterday made Klay, a self-described “ethical AI” company, the first to land a deal with the three major label groups. Bloomberg reported that the deal will provide the foundation for a new streaming service that will allow users to remake songs in different styles; with access to the major labels’ sprawling catalogs, Klay will now be able to train its models using millions of recordings.

A press release from Warner describes Klay as “an entirely new subscription product that will uplift great artists and celebrate their craft,” rather than “a prompt-based meme generation engine designed to supplant human artists.” In contrast to AI music generation programs like Suno and Udio, WMG notes that Klay avoided the same charges of unethical training programs by working for over a year to reach licensing deals before using copyrighted materials to develop its Large Music Model and interactive tools. Though the release insists that “all experiences created through the platform will enhance, rather than replace, human creativity, ensuring artistry remains at the center and copyright is diligently protected,” it is unclear whether artists will be given the option to opt out.

“Our goal is always to support and elevate the creativity of our artists and songwriters, while fiercely protecting their rights and works,” said Carletta Higginson, WMG’s executive vice president and chief digital officer. “From day one, Klay has taken the right approach to the rapidly-evolving AI universe by creating a holistic platform that both expands artistic possibilities and preserves the value of music. We appreciate the Klay team’s work in advancing this technology and guiding these important agreements.”

“Technology is shaped by the people behind it and the people who use it,” Klay’s Founder and CEO Ary Attie echoed. “At Klay, from the beginning, we set out to earn the trust of the artists and songwriters whose work makes all of this possible. We will continue to operate with those values, bringing together a growing community to reimagine how music can be shared, enjoyed, and valued. Our goal is simple: to help people experience more of the music they love, in ways that were never possible before—while helping create new value for artists and songwriters. Music is human at its core. Its future must be too.”

WMG’s deal with Klay arrived on the same day that the entertainment company settled its copyright infringement lawsuit against Udio, which Reuters reported ended with a licensing deal and plans to jointly launch an AI music generation platform by 2026. UMG settled a similar suit – filed alongside the Recording Industry Association and alleging copyright infringement on an “almost unimaginable scale” – with a similar deal last month.

The major labels’ new deal arrives amid a flood of controversy regarding AI music as its reach becomes undeniable, including widespread artist protests and some chart placements for entirely AI-generated songs.