AI-powered streaming startup KLAY signs licensing deals with the “big three” major labelsThings are looking promising for LA-based AI streaming startup KLAY, which has just signed licensing deals with the big three major labels, Universal Music Group, Warner Music Group and Sony Music Entertainment (SME).
It hasn’t been smooth sailing for many AI music companies, with Udio – one of the biggest AI music generation platforms – having fought a legal battle with UMG in 2024, with the latter accusing it of “unimaginable scales” of copyright infringement. Many remain sceptical about the legality of AI music generators, and have concerns over the correct licensing being obtained to train models on popular music.

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But KLAY is looking to dispel such doubts, as it says its proprietary AI is “trained entirely on licensed music”. KLAY becomes the first AI startup to sign licensing deals with the big three major labels.
In a statement shared on its website, KLAY says the deals will “help further evolve music experiences for fans, leveraging the potential of AI, while fully respecting the rights of artists, songwriters and rightsholders”.
“At a time when many AI projects are accused of unethical training protocols and practices towards the artistic community, KLAY has, from the beginning, taken a unique path,” the company continues.
“Working in partnership with the music industry to pioneer a new active listening model designed to enhance both human creativity and the consumer experience.”
On its deal with KLAY, UMG writes in a statement on its website: “KLAY is not a prompt-based meme generation engine designed to supplant human artists. Rather, it is an entirely new subscription product that will uplift great artists and celebrate their craft. Within KLAY’s system, fans can mold their musical journeys in new ways while ensuring participating artists and songwriters are properly recognized and rewarded.”
In any case, it seems the major labels are softening in their stance towards AI-powered music platforms; despite a highly-publicised legal battle last year, Universal recently settled its dispute with Udio, and the two firms even announced plans to collaborate on a new music creation, consumption and streaming experience.
Elsewhere, Suno just raised $250 million in its latest funding round, leading to a post-money valuation of $2.45 billion.
Learn more about KLAY.
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