Major music labels strike licensing deals with AI streaming startup Klay, Bloomberg News reports

Universal Music Group, Sony Music and Warner Music Group have licensed their catalogs to Klay, an AI-powered music streaming startup that will let users remake songs using artificial intelligence, Bloomberg News reported on Wednesday, citing people familiar with the deals.

Klay is the first AI music service to secure deals with all three major labels and has licensed thousands of tracks to train its model, pledging to give artists as well as labels control over how their works are used, the report said.

The startup will combine traditional streaming features from services such as Spotify with AI tools that allow users to remake songs in different styles, according to Bloomberg.

UMG, Sony Music, Klay and Warner Music Group did not immediately respond to Reuters’ requests for comment.

The growing use of generative AI in creative industries has triggered a wave of lawsuits, with artists, authors and rights holders accusing AI firms such as Udio and Suno of using copyrighted material, without consent or compensation, to train their models.

Earlier today, Warner Music Group settled a copyright lawsuit with Udio, as they plan to jointly launch an AI-powered song creation platform by 2026, using licensed tracks to protect artists while creating new revenue streams.