CAMBRIDGE, Mass. — In a quiet 19th-century office building in Cambridge, Massachusetts, Suno CEO Mikey Shulman watches as his team turns typed commands—“Afrobeat, flute, 90 beats per minute”—into a full song. Across the country, Udio CEO Andrew Sanchez supervises a similar process in New York. Neither team plays a traditional instrument, yet their artificial intelligence platforms can produce original music across countless genres in minutes.
Suno and Udio are among the most high-profile AI music generators, capable of synthesizing songs inspired by the works of past and present artists. But this innovation has brought legal scrutiny. In 2024, Sony Music, Universal Music, and Warner Records filed copyright infringement lawsuits against the startups, accusing them of using artists’ work without permission.
Since then, both companies have sought to negotiate a truce with the music industry. Suno, now valued at $2.45 billion, reached a settlement with Warner last year, while Udio has secured licensing agreements with Warner, Universal, and independent label Merlin. Sony remains the only major label yet to settle, leaving ongoing lawsuits in Boston and New York federal courts. European legal challenges have also emerged.
“We’ve always believed collaboration is the only sustainable path forward,” Shulman said. “Music is culturally vital. It doesn’t make sense to divide it into AI and non-AI worlds.”
The settlements have prompted changes for users. After Udio’s deal with Universal, some users temporarily lost access to download AI-generated tracks. But Sanchez said licensing arrangements create opportunities for fans to engage with their favorite artists while using AI tools responsibly.
“Maintaining a close connection to the music industry is essential,” Sanchez said. “Fans want to interact with their favorite songs and artists in ways that respect creators.”
Yet not all musicians are convinced. Singer-songwriter Tift Merritt, co-chair of the Artist Rights Alliance, has helped lead campaigns urging AI companies to honor copyright laws. The “Stealing Isn’t Innovation” initiative, supported by artists including Cyndi Lauper and Bonnie Raitt, highlights concerns that AI music could exploit creators without fair compensation.
Despite skepticism, the startups continue to push for industry integration. Millions of AI-generated songs are now circulating online and on streaming platforms like Spotify. For Suno and Udio, the challenge is no longer just technological—it is finding a model that allows AI creativity and music industry rights to coexist.
“The future of music isn’t AI versus humans,” Shulman said. “It’s how both can evolve together.”