Universal, Warner Nearing AI Licensing Deals: FT

Universal Music Group and Warner Music Group are nearing landmark artificial intelligence licensing deals, the Financial Times (FT) reported, citing people familiar with the matter, Nilutpal Timsina reported for Reuters.

Negotiations have focused on how labels will license their songs for generating AI-created tracks and for training large language models. (Photo: John Wikimedia Commons)

Universal and Warner could finalize agreements with AI companies within weeks, the FT said. Talks reportedly involve start-ups including ElevenLabs, Stability AI, Suno, Udio, and Klay Vision, as well as major technology firms such as Google and Spotify.

The rapid adoption of generative AI in creative industries has sparked a wave of lawsuits, with artists, authors, and rights holders accusing AI firms of using copyrighted material without permission or compensation to train their models.

Negotiations have focused on how labels will license their songs for generating AI-created tracks and for training large language models.

According to the report, the labels are seeking a payment structure similar to music streaming, in which each use of a song triggers a micropayment.