Universal partners AI startup Udio on next-year platform, revenue for UMG artists
After a courtroom showdown, Universal Music Group and AI startup Udio seem to have found common ground, sealing a deal that follows a recent copyright settlement between them. Udio, the team behind the viral “BBL Drizzy” AI model, will now partner with UMG to build a subscription service that lets creators crank out music with artificial intelligence. The arrangement appears to include a financial piece for the label, possibly opening new income streams for its roster of artists and songwriters.
By tying compensation to the platform’s rollout, Universal hopes to flip a legal spat into a money-making chance, while giving its talent access to the latest tools. The move hints at a shift toward making AI-driven content a part of the traditional music business. As the two firms get ready to launch, the exact mechanics and what it means for creators are still up for debate.
“We’re launching an AI music-making platform next year,” a UMG spokesperson said. The deal includes some form of compensation and “will provide further revenue opportunities for UMG artists and songwriters,” according to Universal. Udio, the company behind “BBL Drizzy,” plans to roll out the subscription service next year.
The pair are launching an AI music making platform next year. The deal includes some form of compensation and "will provide further revenue opportunities for UMG artists and songwriters," Universal says. Udio, the company behind "BBL Drizzy," will launch the platform as a subscription service next year.
Universal, alongside other industry giants Sony and Warner, sued Udio and another startup Suno for "en masse" copyright infringement last year. Universal -- whose roster includes some of the world's biggest performers like Taylor Swift, Bad Bunny, and Ariana Grande -- says the new tool will "transform the user engagement experience" and let creators customize, stream, and share music.
The partnership might give UMG the revenue lift it talks about, but it’s still early days. Universal Music Group says the deal with Udio settles a copyright suit and will power a subscription-based AI music-making platform that should roll out next year. In theory, the agreement offers compensation and “further revenue opportunities” for UMG’s artists and songwriters, while Udio brings its “BBL Drizzy” tech into the mix.
The catch? Licensing details are still pretty vague, and we don’t know if the model will calm industry worries about AI-generated tracks. Around the same time, a handful of similar licensing deals are expected, hinting at a quick shift in how the business handles AI.
Without any numbers on subscriber growth or royalty formulas, it’s hard to say how creators will be affected financially. So we’ll be watching to see whether this turns into real earnings or just adds another layer of complexity to the ongoing AI-music conversation.
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Common Questions Answered
What is the nature of the new partnership between Universal Music Group and Udio?
Universal Music Group and AI startup Udio have moved from litigation to collaboration, signing a deal that will see Udio build a subscription‑based AI music‑making platform for the label. The partnership follows a recent copyright settlement and aims to create new revenue streams for UMG’s roster.
How will the "BBL Drizzy" AI model be incorporated into the upcoming platform?
"BBL Drizzy," the viral AI model created by Udio, will power the core music‑generation engine of the subscription service launching next year. Creators will be able to use the model to produce original tracks, with the technology licensed directly through the UMG‑Udio agreement.
What financial benefits does the deal promise for UMG artists and songwriters?
The agreement includes a compensation component that will provide further revenue opportunities for UMG’s artists and songwriters, opening a new income stream beyond traditional royalties. Universal says the model will generate ongoing payments tied to the platform’s subscription usage.
When is the AI music‑making platform expected to launch, and what is known about its licensing terms?
The platform is slated for launch next year as a subscription service. While the deal guarantees compensation, the specific licensing terms remain opaque, and it is unclear how the model will satisfy broader industry licensing standards.