Universal Music Group (UMG) and AI music platform Udio have announced a strategic collaboration that combines traditional music licensing with generative AI technology. The agreement settles recent copyright litigation between the two companies and establishes a framework for a new, fully licensed AI-powered music creation and streaming service.
Under the terms of the deal, Udio will license UMG’s recorded and published music catalogues to train its generative AI models on authorized material. The forthcoming platform—scheduled for launch in 2026—will allow users to generate, customize, and stream music in what the companies describe as a “licensed and protected environment.”
The collaboration marks a significant step in how major record labels are approaching AI. Rather than opposing the technology outright, UMG is positioning itself as a participant in shaping the commercial and ethical boundaries of AI-generated music.
UMG Chairman and CEO Sir Lucian Grainge said the agreement underscores the company’s intent to “do what’s right by our artists and songwriters,” adding that the partnership is part of UMG’s broader effort to build “a healthy commercial AI ecosystem.”
Andrew Sanchez, Co-Founder and CEO of Udio, called the collaboration a milestone for the music industry: “This moment brings to life everything we’ve been building toward—uniting AI and the music industry in a way that truly champions artists.”
As part of the transition, Udio’s current product will remain available but will undergo several modifications. The platform will introduce measures such as fingerprinting, content filtering, and usage controls before the launch of the new subscription-based version.
The partnership follows UMG’s recent agreements with YouTube, TikTok, Meta, BandLab, and other technology firms exploring responsible AI use in music. Together, UMG and Udio aim to develop new business models for artists, songwriters, and fans in an era where AI increasingly influences the creative process.
The new AI music platform is expected to go live in 2026.
