Artificial intelligence music companies Suno and Udio are negotiating with major record labels in the United States after serious legal disputes about copyright. In 2024, Sony Music, Universal Music and Warner Records sued the startups, saying systems were trained on protected songs without permission. Since then, millions of AI-generated tracks have appeared online. The companies now want to secure a license to use music legally and reduce the ongoing dispute.

Suno has reached a settlement with Warner, while Udio has signed agreements with Universal, Warner and Merlin. Sony’s case is still moving forward in federal court. Company leaders say AI can help artists generate new ideas and experiment with sound. However, many musicians show strong concern and argue that training systems without clear consent is unfair. Both startups continue to negotiate with labels in hopes of building long term partnerships and changing how music is created and shared in the digital age.