UMG and Udio Settle To Launch Licensed AI Music Platform in 2026

After the two companies settled their lawsuit.

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Summary

• Universal Music Group (UMG) has settled its lawsuit with Udio and announced a licensed AI music creation platform launching in 2026
• The new platform will be trained exclusively on authorized and licensed music, creating new revenue opportunities for UMG’s artists
• UMG also formed a strategic alliance with Stability AI to build generative AI tools, signaling a shift from pure litigation to licensed innovation in the music industry

Universal Music Group has settled its lawsuit with Udio and announced industry-first agreements for a new licensed AI music creation platform launching in 2026. The joint platform will be trained on authorized and licensed music. It combines creation, consumption and streaming in one destination aimed at fans and artists.

During the transition, Udio’s current product remains available with creations controlled within a walled garden and new safeguards like fingerprinting and filtering. UMG says the agreements will create further revenue opportunities for its artists and songwriters via new licensing frameworks.

UMG chairman Sir Lucian Grainge frames the move as artist-first, saying it will “foster a healthy commercial AI ecosystem”.

In a coordinated push, UMG also unveiled a strategic alliance with Stability AI to build next-generation professional music creation tools powered by responsibly trained generative AI.

Context matters for culture watchers. Sony and Warner’s cases against Udio continue, and all three majors remain in active litigation with Suno. The takeaway is a pivot from pure litigation to licensed innovation, signaling how generative AI will be integrated into music on artist-consent and compensation terms.