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Universal Music Group rewrites its AI playbook with deals involving Udio and Stability AI

Maximilian Schreiner
Maximilian Schreiner View the LinkedIn Profile of Maximilian Schreiner
Oct 30, 2025
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Universal Music Group shifts AI strategy with deals involving Udio and Stability AI.

The Universal Music Group (UMG), the world's largest music company, is rethinking how it approaches generative AI. Instead of relying solely on confrontation, UMG is now combining legal pressure with selective partnerships. Two closely timed deals - one settlement with AI startup Udio and a new collaboration with Stability AI - signal a broader plan to steer and monetize the growth of AI-generated music.

According to the Wall Street Journal, UMG reached a settlement with Udio over a copyright dispute. Universal had sued Udio, along with rival platform Suno, for allegedly using copyrighted songs to train their AI models.

Deal with Udio sets stage for controlled AI music platform

As part of the settlement, Udio will launch a new subscription service that lets fans create remixes and new tracks based on licensed songs. The platform will operate under tight restrictions: artists must explicitly opt in before their music can be used, and all AI-generated content must remain within the Udio environment.

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UMG says artists will be compensated both for the use of their songs in model training and when subscribers create new works from them. Michael Nash, Universal’s Chief Digital Officer, said the product allows fans to engage with music on a deeper level.

Partnership with Stability AI focuses on pro tools for artists

UMG has also announced a strategic partnership with Stability AI to develop creative tools for artists and producers. As Billboard reports, the collaboration centers on models trained “responsibly” using licensed data. Stability AI, known for its audio model Stable Audio, will work directly with UMG artists to build tools tailored to their creative workflows.

Nash said UMG will only consider AI products built on responsibly trained models, emphasizing that the company’s goal is to give artists control over how their music and likenesses are used in AI systems.

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