Universal Music Group Announces Landmark Merger with AI Music Platform Udio Following Copyright Settlement

In a groundbreaking move that could reshape the future of the music industry, Universal Music Group (UMG) has announced a major partnership and merger with AI music creation app Udio, following the settlement of UMG’s recent copyright infringement lawsuit against the platform — as reported by Music Business Worldwide.

The new collaboration will see UMG and Udio jointly develop an AI-powered commercial music creation and streaming platform, set to launch in 2026. The companies describe it as a “licensed and protected environment” where users can customize, stream, and share music while ensuring fair compensation for artists and songwriters.

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UMG confirmed that as part of the deal, new licensing agreements for recorded music and publishing will create fresh revenue opportunities for its artists. The announcement follows more than a year of intense legal battles, with UMG and other major labels previously accusing Udio and peer company Suno of “mass copyright infringement.”

UMG CEO Sir Lucian Grainge hailed the agreement as a turning point, stating, “These new agreements with Udio demonstrate our commitment to do what’s right by our artists and songwriters, whether that means embracing new technologies, developing new business models, diversifying revenue streams or beyond,”

Udio co-founder and CEO Andrew Sanchez added, “We couldn’t be more thrilled about this collaboration and the opportunity to work alongside UMG to redefine how AI empowers artists and fans.

“This moment brings to life everything we’ve been building toward – uniting AI and the music industry in a way that truly champions artists. Together, we’re building the technological and business landscape that will fundamentally expand what’s possible in music creation and engagement.”

While the deal has been praised as a progressive move for the industry, many critics argue it blurs the line between creativity and computation. For years, UMG fought against AI-generated music for threatening artist integrity — now, it’s capitalising on the very technology it once condemned. Whether this merger represents innovation or contradiction remains to be seen, but one thing is clear: the future of music may no longer be entirely human.