AI Song Generators Suno and Udio Seek Music Industry Acceptance After Legal Battles

The startups hope to negotiate licensing deals after angering the industry with their AI-powered music creation tools.

Published on Feb. 26, 2026

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Suno and Udio, two AI-powered music generation startups, have faced legal battles with major record labels over copyright infringement allegations. After their users flooded the internet with millions of AI-generated songs, the companies are now seeking to negotiate licensing deals and partnerships with the music industry they once antagonized. The startups' leaders, Mikey Shulman of Suno and Andrew Sanchez of Udio, are trying to find a way to work with the industry rather than against it, recognizing the cultural importance of music. While some professional musicians remain skeptical, the startups are hoping to secure a foothold in the industry and adapt their business models to allow fans to engage with their favorite artists' works using AI.

Why it matters

The rise of AI-powered music generation tools like Suno and Udio has disrupted the traditional music industry, leading to legal battles and tensions between the tech companies and the music community. The outcome of these negotiations will shape the future of AI's role in music creation and distribution, with implications for both artists and consumers.

The details

Suno and Udio have developed AI-powered tools that allow users to generate new music without any musical skills or training. The companies have been accused of copyright infringement by major record labels, who allege that the startups are exploiting the recorded works of their artists. In response, Suno and Udio have sought to negotiate licensing deals and partnerships with the industry, recognizing the need to work collaboratively rather than antagonistically. The companies have had varying degrees of success, with Suno striking a settlement with Warner Music and Udio signing deals with Warner, Universal, and independent label Merlin. However, Sony Music remains the only major label that has not settled with either startup.

  • In 2024, Sony Music, Universal Music, and Warner Records sued Suno and Udio for copyright infringement.
  • In 2025, Suno struck a settlement deal with Warner Music.
  • In 2026, Udio signed licensing agreements with Warner, Universal, and independent label Merlin.

The players

Mikey Shulman

The co-founder and CEO of Suno, a Cambridge-based AI music generation startup.

Andrew Sanchez

The CEO of Udio, a New York-based AI music generation startup.

Tift Merritt

A singer-songwriter and the co-chair of the Artists Rights Alliance, who has helped organize a campaign against AI music companies.

Christopher "Topher" Townsend

A one-man band musician from Philadelphia, Mississippi who uses Suno and other AI tools to create and market gospel music under the fictional singer "Solomon Ray".

Jonathan Wyner

A professor of music production and engineering at the Berklee College of Music in Boston, who sees generative AI as a potential tool for musicians.

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What they’re saying

“We have always thought that working together with the music industry instead of against the music industry is the only way that this works. Music is so culturally important that it doesn't make sense to have an AI world and a non-AI world of music.”

— Mikey Shulman, Co-founder and CEO of Suno

“Having a close relationship with the music industry is elemental to us. Users really want to have an anchor to their favorite artists. They want to have an anchor to their favorite songs.”

— Andrew Sanchez, CEO of Udio

“The economy of AI music is built totally on the intellectual property, globally, of musicians everywhere without transparency, consent, or payment. So, I know they value their intellectual property, but ours has been consumed in order to replace us.”

— Tift Merritt, Singer-songwriter and co-chair of the Artists Rights Alliance

“To the creative musician, AI represents both enormous potential benefits in terms of streamlining things and frankly making kinds of music-making possible that weren't possible before, and making it more accessible to people who want to make music.”

— Jonathan Wyner, Professor of music production and engineering at Berklee College of Music

What’s next

The judge in the ongoing lawsuits between the AI music startups and the major record labels will continue to make decisions that will shape the future relationship between the tech companies and the music industry.

The takeaway

The battle between AI music generation startups and the traditional music industry highlights the tensions and challenges that arise when disruptive technologies collide with established creative fields. As the two sides seek to find a path forward, the outcome will have significant implications for the future of music creation, distribution, and the rights of artists in the digital age.