Warner Music and Suno enter licensing partnership for AI music after lawsuit settlement

Warner Music Group (WMG) has reached a settlement with AI music startup Suno, transforming a copyright dispute into what both companies are calling a "first-of-its-kind partnership." The deal aims to balance innovation in AI-generated music with protections for artists and songwriters.

Under the agreement, Suno will launch new licensed AI models in 2026 that will replace its current offerings. The partnership establishes key guardrails: All WMG artists, including high-profile names such as Lady Gaga, Coldplay, and Sabrina Carpenter, will have complete control over whether their names, voices, likenesses, and compositions can be used in AI-generated content.

The platform will also introduce significant changes to its service structure. Starting in 2026, downloading audio will require a paid subscription, while free-tier users will only be able to play and share songs created on the platform. Paid users will face monthly download caps with options to purchase additional downloads.

WMG CEO Robert Kyncl framed the deal as a victory for the creative community, stating that "AI becomes pro-artist when it adheres to our principles: committing to licensed models, reflecting the value of music on and off platform" and providing opt-in controls for creators.

As part of the agreement, Suno acquired Songkick, WMG's live music discovery platform, for an undisclosed sum. The acquisition aims to connect AI-powered music creation with live performance experiences.

The settlement follows a similar deal WMG struck with AI music startup Udio last week, signaling a broader industry shift toward licensed AI music services. Universal Music Group and Sony Music Entertainment, who also sued both startups last year, are reportedly in licensing negotiations of their own. Suno recently raised $250 million at a $2.45 billion valuation, demonstrating strong investor confidence in AI music technology.