Warner Music Group (WMG) has announced a significant shift in the music industry's approach to artificial intelligence, settling its copyright lawsuit against the AI music startup Suno. This landmark deal, revealed on Tuesday, aims to "open new frontiers in music creation, interaction, and discovery, while both compensating and protecting artists, songwriters, and the wider creative community." This development follows WMG's earlier settlement with another AI music startup, Udio, last week, which included a licensing deal for an AI music creation service slated for launch in 2026.

As part of its agreement with Suno, WMG has also sold its live music and concert-discovery platform, Songkick, to the AI music company for an undisclosed amount. WMG, which originally acquired Songkick’s app and brand in 2017 (with Live Nation subsequently acquiring its ticketing business), stated that Songkick will continue to operate as a fan destination under Suno’s ownership. The partnership with WMG will enable Suno to launch more advanced and licensed models next year, replacing its current offerings. Furthermore, downloading audio from Suno’s service will necessitate a paid account, while users on the free tier will be limited to playing and sharing songs created on the platform.

A critical aspect of the WMG-Suno deal is the explicit control granted to WMG's artists and songwriters. They will retain full authority over whether and how their names, images, likenesses, voices, and compositions are utilized in new AI-generated music. This commitment to artist protection was highlighted by WMG CEO Robert Kyncl, who stated, "This landmark pact with Suno is a victory for the creative community that benefits everyone. With Suno rapidly scaling, both in users and monetization, we’ve seized this opportunity to shape models that expand revenue and deliver new fan experiences." Artists signed to WMG include globally recognized names such as Lady Gaga, Coldplay, The Weeknd, and Sabrina Carpenter, among others.

These settlements by WMG with both Suno and Udio are particularly noteworthy given that last year, Warner Music Group, Universal Music Group, and Sony Music Entertainment jointly sued both Suno and Udio for copyright infringement. While WMG has resolved its disputes, Universal Music Group and Sony Music Entertainment are also reportedly engaged in discussions to license their extensive catalogs to Udio and Suno, potentially leading to further settlements in the industry.

In a strong indicator of investor confidence in AI music technology, Suno recently announced a successful $250 million Series C funding round. This round, which valued the company at $2.45 billion post-money, was led by Menlo Ventures. Notable participants included Nvidia’s venture arm NVentures, along with Hallwood Media, Lightspeed, and Matrix, underscoring the growing belief in the transformative potential of AI in the music sector.