Three of the biggest record labels in the world have made a significant move in the growing artificial intelligence music arena. Sony Music Entertainment, Universal Music Group and Warner Music Group have each signed licensing agreements with the AI-driven music startup Klay Vision. This deal marks a clear shift in how the music industry is responding to the rise of generative AI in the music space.
According to BrooklynVegan, all three major labels reached deal with Klay. The platforms will provide Klay with access to the labels’ catalogs so the startup’s large-music model can train across licensed works rather than relying on un-cleared content. By securing agreements with Sony, Universal and Warner, Klay becomes the first AI-music service to gain multi-label backing across the major players.
For the labels and their artists, this deal signals a willingness to explore new revenue streams and creative uses of the catalog while maintaining control and compensation mechanisms. Rather than continuing exclusively down the litigation path against unlicensed AI music generators, this move suggests they are opting for collaboration and licensing frameworks. For example, Klay has emphasized that its model will be trained only on licensed music, aligning with labels’ concerns around artist rights and usage.
For artists, the practical impact could include opportunities to engage with AI-powered experiences that remix, re-interpret or enable new listening formats of their work. At the same time, many artists and rights-holders remain cautious about how AI might affect originality, revenue splits and creative control.
Now, we will have to wonder if fans will be able to use AI tools to re-imagine songs, whether the labels will allow full remixes or derivative works and how royalties will be tracked and paid. Equally important is how this deal will set a precedent for independent labels and smaller rights-holders who will seek similar protections and terms as AI music models proliferate.
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