Universal and Warner Close to AI Music Licensing Deals With Google, Spotify and Start-Ups – Who Will Be First?

Universal And Warner In Talks To License Music To Artificial Intelligence Companies

Two of the world’s biggest record labels, Universal Music Group and Warner Music Group, are closing in on landmark licensing agreements with artificial intelligence companies, according to people close to the discussions.

The deals, expected within weeks, could decide how music is used in both training AI systems and in generating new tracks.

Start-Ups And Tech Giants In Negotiations

Talks are said to involve fast-rising start-ups such as ElevenLabs, Stability AI, Suno, Udio and Klay Vision, alongside major players including Google and Spotify.

While it remains unclear which company will ink the first contract, sources say the aim is to build a framework that covers both training large language models on existing catalogues and creating AI-driven tracks that replicate familiar voices and sounds.

Streaming Model Considered As Blueprint

Record labels are pushing for a payment structure similar to streaming royalties, where every play triggers a small payout.

To enforce this, music executives want AI firms to develop tracking tools capable of detecting when copyrighted songs are used.

This approach mirrors YouTube’s Content ID system, which automatically identifies and monetises copyrighted material.

Industry Braces For AI Disruption

The move comes amid growing concerns over AI’s influence on creative industries.

Lawsuits have piled up against AI developers accused of training their models on copyrighted works without consent.

French streaming service Deezer recently revealed that nearly one-third of uploads on its platform were AI-generated, while Spotify admitted to removing 75 million “spammy” AI tracks in the past year.

Learning From Past Mistakes

Executives say the labels are determined not to repeat the industry’s missteps during the rise of file-sharing platforms such as Napster and LimeWire, which devastated music revenues in the early 2000s.

Elliot Grainge, chief executive of Atlantic Records, drew a direct comparison:

“We saw an industry lose 50, 60, 70 per cent of its value . . . Labels have a responsibility to negotiate the best deals for their artists — and they’re really good at that. They learned from their mistakes in the past. They understand survival now because of that tumultuous period.”

Sony Music Watches Closely

Sony Music, home to global acts including Adele and Beyoncé, confirmed it is also in talks with AI companies.

A spokesperson said discussions were limited to firms that “have ethically trained models and that benefit our artists and songwriters.”

The Next Music Battleground

Coinlive believes these negotiations are not just about royalties but about power.

The industry stands at a crossroads where songs may no longer be consumed only as performances but as data that fuels machines capable of imitating any artist.

If record labels succeed in setting clear payment systems, they could transform a looming threat into a revenue stream.

If they fail, AI-generated music risks flooding the market with little accountability, leaving both artists and fans in uncharted territory.

The question is no longer whether AI belongs in music, but who gets paid when it takes the stage.