AI Music Heats Up as Warner Music Settles with Udio, Suno Hits $2.45B Valuation
Warner Music Group has settled its copyright lawsuit with AI firm Udio, marking the second major label to resolve disputes with the Massachusetts-based company after Universal Music Group's October agreement. The settlement includes plans for a joint subscription service launching in 2026, leveraging Warner's catalog for AI-generated remixes, covers, and new songs featuring opted-in artists.
Meanwhile, rival AI music company Suno announced a $250 million funding round, catapulting its valuation to $2.45 billion. These developments signal accelerating institutional interest in AI music technology, despite unresolved copyright questions in ongoing litigation.
Warner CEO Robert Kyncl emphasized the company's commitment to artist rights, noting Udio's steps to ensure authorized content. Sony Music remains the lone major label still litigating against Udio.
