Major labels license music catalogs to AI startup Klay

Universal Music Group, Sony Music, and Warner Music Group have licensed their catalogs to Klay Vision Inc., an AI streaming startup that will let users remake songs using artificial intelligence, making it the first AI music service to secure deals with all three major record labelsjapantimes.
The Los Angeles-based company has spent over a year developing a licensing framework with the music industry and will launch a platform combining traditional streaming features with AI tools powered by its Large Music Model, trained entirely on licensed musicmusicbusinessworldwide.
The agreements mark a shift from litigation to collaboration after all three labels sued AI music platforms Udio and Suno in 2024 for alleged unauthorized use of copyrighted recordings, with Universal and Warner recently settling their Udio lawsuits to develop licensed AI servicesstereogum.

Major Music Labels License Catalogs to AI Streaming Startup Klay

Universal Music Group, Sony Music, and Warner Music Group have struck licensing agreements with Klay Vision Inc., an AI-powered music streaming startup that will allow users to remix and recreate songs using artificial intelligence. Klay becomes the first AI music service to secure deals with all three major record labels, which collectively control roughly 70% of the global music market.japantimes

The Los Angeles-based company announced Thursday that it has been working with the music industry for more than a year to build what it calls “an innovative and comprehensive licensing framework for an AI-driven music experience”. Klay’s platform will combine traditional streaming features similar to Spotify with AI tools powered by its Large Music Model, which has been trained entirely on licensed music from thousands of hit songs.musicbusinessworldwide

From Litigation to Collaboration

The deals mark a turning point for an industry that spent the past year locked in copyright battles with AI music companies. All three major labels sued AI music platforms Udio and Suno in 2024 for allegedly training their models on copyrighted recordings without permission. Universal Music Group settled its lawsuit with Udio in October, followed by Warner Music Group’s settlement Wednesday, with both agreeing to collaborate on licensed AI platforms launching in 2026.abcnews

Klay is led by music producer and tech entrepreneur Ary Attie, who founded the company in 2021, alongside Thomas Hesse, former President of Global Digital Business at Sony Music Entertainment, and Björn Winckler from Google’s DeepMind AI laboratory. “Our great artists have always embraced the newest technologies — we believe the next Beatles will play with Klay,” Attie said in a previous statement announcing the company’s collaboration framework with Universal last year.universalmusic

The agreements establish terms under which Klay will “help further evolve music experiences for fans, leveraging the potential of AI, while fully respecting the rights of artists, songwriters, and rightsholders,” according to the company’s announcement. Warner Music Group’s Chief Digital Officer Carletta Higginson said Klay has “taken the right approach to the rapidly-evolving AI universe by creating a holistic platform that both expands artistic possibilities and preserves the value of music”.musicbusinessworldwide

Klay plans to expand its licensing framework to include independent labels, artists, publishers, and songwriters, creating what it describes as “a scalable foundation for the industry at large”.wmg