On October 2, 2025, Reuters reported that Universal Music and Warner Music are nearing AI licensing agreements that would allow tech giants and startups to legally use their music catalogs to train and power AI systems.

The agreements under discussion involve Alphabet’s Google, Spotify, and other creative AI startups. The goal is to create frameworks that enable AI-generated music while protecting artists’ rights and ensuring royalties are fairly distributed.

This comes after years of debate around unauthorized use of copyrighted material in AI model training. Licensing could mark a turning point—bringing the music industry into formal partnerships with AI platforms rather than positioning itself in opposition.

Industry sources suggest the deals may cover both training datasets and outputs of generative AI systems, providing clarity on monetization and intellectual property rights.

Key Highlights

• Universal Music & Warner Music nearing AI licensing deals with Alphabet, Spotify, and AI startups.

• Licenses expected to cover music used in AI training and possibly AI-generated outputs.

• Represents a shift from confrontation toward structured collaboration between music industry and AI developers.

• Could create new royalty models and revenue streams for artists, labels, and rights holders.

• Comes amid growing legal and regulatory scrutiny of AI’s use of copyrighted works.

Why This Matters

1. Artists & Rights Protection: Ensures musicians are compensated when their work is used to train or power AI systems.

2. Legitimizing AI in music: Formal licensing helps shift AI music creation from “gray area” into legal mainstream.

3. Tech + Creative Industry Alignment: Aligns incentives between streaming giants, AI startups, and record labels.

4. Global precedent: Could set a framework for how other creative sectors—film, publishing, visual arts—deal with AI licensing.

Source
Reuters – Full Article