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Warner Music Group and AI startup Udio have settled their copyright dispute, forming a partnership to create a new service allowing users to remix songs by well-known artists. This marks the second such agreement between a major record label and Udio, known for its AI-generated music tools. The deal aims to create new income streams for artists and songwriters, ensuring their work is protected. Udio remains a closed-system and will launch in 2026, with artists and songwriters credited and paid for their participation. Meanwhile, Sony Music Entertainment has not signed an AI licensing deal with Udio or Suno, having filed a copyright lawsuit against them last year. Warner also announced a partnership with AI company Stability AI to develop professional tools for musicians, songwriters, and producers.

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