Warner Music Group Reaches Settlement, Forms Major Partnership with AI Music Platform Suno

Warner Music Group (WMG) has reached a settlement with AI music generator Suno Inc., ending a high-profile copyright lawsuit and laying the groundwork for a new partnership that could reshape how AI-generated music is created and commercialised.

WMG sued Suno and fellow AI startup Udio last year, accusing them of “widespread infringement” of copyrighted recordings on an “almost unimaginable scale.”

The labels, represented by the Recording Industry Association of America, argued that AI companies were training their systems on artists’ work to “saturate the market.”

They sought damages and a halt to the use of copyrighted material. WMG settled with Udio last week, and the two companies will jointly launch an AI music platform in 2026.

Today, Suno announced its own settlement—also for an undisclosed amount—and said it would compensate artists, songwriters, and the broader creative community. The agreement will allow Suno users to create AI-generated music influenced by WMG artists.

“This landmark pact with Suno is a victory for the creative community that benefits everyone,” WMG CEO Robert Kyncl said. “AI becomes pro-artist when it adheres to our principles: committing to licensed models… and providing artists and songwriters with an opt-in for the use of their name, image, likeness, voice, and compositions in new AI songs.”

The companies will launch “new, more advanced, and fully licensed models,” while Suno’s current models will be retired. Downloading AI-generated tracks will now be restricted to paying subscribers and subject to usage caps, a move aimed at reducing the flood of AI-created music on streaming platforms.

Suno CEO Mikey Shulman said, “Our partnership with Warner Music unlocks a bigger, richer Suno experience… Together, we can enhance how music is made, consumed, experienced, and shared.”

The deal underscores a broader shift as major music labels increasingly embrace AI partnerships—buoyed by Suno’s recent $250 million Series C raise at a $2.45 billion valuation.

Last week, WMG announced a strategic collaboration with Stability AI to create the next generation of responsible AI tools for music creation.