LONDON (AP) – In a significant move, the largest music label has made an AI licensing agreement with a lesser-known startup named Clay Vision, as announced on Thursday. This marks the latest in a series of partnerships that underscore the transformative potential of this technology in the music sector.
Warner Music Group, Universal Music Group, and Sony Music Entertainment, along with their publishing divisions, have all entered into individual agreements with Clay, according to a statement from Warner.
This development follows closely after Warner inked two other AI-related deals with companies Udio and Stability AI.
Details about the agreement and Clay’s operations, which is based in Los Angeles, remain sparse.
The agreement is designed to help Clay “utilize AI to enhance the music experience for fans, while ensuring that the rights of artists, songwriters, and rights holders are respected,” according to the statement. Clay has collaborated with the music industry to secure licensing for its “Framework for AI-driven Music Experiences” and devised “large-scale music models” trained solely on licensed music.
As AI-generated music becomes more prevalent on streaming services—with tools that can create songs instantly from user prompts—there’s a notable surge in virtual singers and bands that, despite not being real, have garnered millions of streams and chart placements.
Previously, Warner, Universal, and Sony had sued Snow and Udio, creators of popular AI music generation tools, claiming they misused artists’ recordings without proper compensation. However, there seem to be indications that the dispute is shifting towards resolution through discussions.
Recently, Warner, which represents artists like Ed Sheeran and Dua Lipa, announced that it has settled its copyright infringement lawsuit against Woodo. The two companies have joined forces to develop Udio’s licensed AI music production service, expected to launch in 2026, allowing users to remix tracks from well-known artists.
Financial specifics of the deal have not been disclosed, but it encompasses Warner’s recording and publishing divisions, with the aim of “establishing new revenue streams for artists and songwriters while ensuring their work remains protected.”
Additionally, Universal Music Group engaged in a deal with Udio last month, which faced backlash after Udio decided to restrict the download of songs created by its users.
Udio stated it plans to maintain a “closed system” while gearing up to launch the upcoming service next year. If artists and songwriters permit the use of their material, they will be credited and compensated when users remix, cover their songs, or craft new songs using their own voices or compositions.
This week, Warner also revealed that it’s collaborating with Stability AI to create “professional-grade tools” for musicians, songwriters, and producers.
