AI song generator startups Suno and Udio angered the music industry. Now they’re hoping to join it

In a 19th-century Cambridge office building, Suno CEO Mikey Shulman demonstrates his company’s artificial intelligence platform generating original music through simple text prompts. The process—requiring no musical instrumentation or technical expertise—produces polished Afrobeat rhythms within seconds, showcasing technology that challenges traditional music creation paradigms.

This emerging capability places AI music generators like Suno and competitor Udio at the center of an industry-wide legal confrontation. Major record labels including Sony Music, Universal Music, and Warner Records filed copyright infringement lawsuits against both startups in 2024, alleging unauthorized use of copyrighted recordings to train their AI systems.

Despite initial tensions, the companies now pursue licensing agreements with music rights holders. Udio has secured deals with Warner, Universal, and independent label Merlin, while Suno reached a settlement with Warner. Sony remains the sole major label without agreements as litigation progresses in federal courts. The settlements have prompted operational changes, including Udio restricting user downloads of AI-generated content—a move that frustrated some early adopters.

Industry professionals express skepticism about AI’s impact on artistic rights. Singer-songwriter Tift Merritt, co-chair of the Artists Rights Alliance, argues that “the economy of AI music is built totally on the intellectual property of musicians everywhere without transparency, consent, or payment.” Her organization has launched campaigns urging ethical AI development practices.

Both startups now emphasize collaboration with the music industry. Shulman acknowledges that technology “evolves very often faster than the law,” while Udio CEO Andrew Sanchez positions his company as artist-friendly alternative, noting users “want to have an anchor to their favorite artists.”

Beyond the legal battles, practical applications emerge. Mississippi-based creator Christopher Townsend utilizes AI tools to produce chart-topping gospel music under a fictional artist persona, demonstrating how technology enables rapid content creation without traditional performance constraints.

Music educator Jonathan Wyner of Berklee College of Music views generative AI as another creative tool, offering “enormous potential benefits in terms of streamlining things and making kinds of music-making possible that weren’t possible before.” Yet the technology continues to provoke fundamental questions about artistic ownership, creative value, and the future structure of the music industry.