Universal Music, Warner Music nearing AI licensing deals, FT reports

Music giants expand AI talks to include Google and Spotify

The logo of Universal Music Group (UMG) is seen at a building in Zurich, Switzerland Jul 20, 2021. REUTERS/Arnd Wiegmann/File Photo

Universal Music and Warner Music are nearing landmark artificial intelligence licensing deals, the Financial Times reported on Thursday, citing people familiar with the matter.

Universal and Warner could each strike deals with AI companies within weeks, the newspaper said.

Talks involved start-ups such as ElevenLabs, Stability AI, Suno, Udio and Klay Vision, the report said, adding that the music companies are also in talks with large technology groups, including Alphabet's Google and Spotify.

Reuters could not immediately confirm the report. Universal, Warner, Google and Spotify did not immediately respond to Reuters' request for comment.

The growing use of generative AI in creative industries has triggered a wave of lawsuits, with artists, authors and rights holders accusing AI firms of using copyrighted material without consent or compensation to train their models.

The deal talks have centred on how the labels license their songs for creating AI-generated tracks and for training large language models, the report said.

The music companies are seeking a payment structure similar to that for streaming, whereby playing a song triggers a micropayment, the report added.