Universal, Warner and Sony Strike Licensing Deals With AI Music Startup Klay

In an unprecedented move for the worldwide music industry, the three major record companies—Universal Music Group, Sony Music, and Warner Music Group—have each signed separate licensing agreements with the artificial intelligence music startup Klay. This is the first time these corporate giants and their publishing divisions have all aligned with a single AI-focused company. Warner Music Group described Klay as a forward-thinking subscription service designed to support creators and honor their work, allowing fans to generate customized musical experiences while guaranteeing that songwriters and performers are compensated fairly.

According to the official release, Klay’s “large music model” was developed exclusively using legally authorized content. The company is also pursuing deals throughout the independent music landscape, aiming to eventually include "all" indie labels, artists, songwriters, and publishers. This follows an October 28 announcement from Universal Music Group—the world’s largest music corporation, home to global superstars such as Taylor Swift—which disclosed a strategic partnership with Klay to develop a "pioneering commercial ethical foundational model." Universal has been at the forefront of demanding stronger protections for artists as AI tools evolve, reflecting a broader industry effort to ensure technology serves creators rather than undermines them.

Though details about Klay’s forthcoming subscription model and product capabilities remain limited, its website currently features the tagline “Music Set Free” and invites interested users to join a waitlist. The leadership team brings together expertise from both music and tech: Founder and CEO Ary Attie is supported by co-founder and Chief Content and Commercial Officer Thomas Hesse, a former president of Sony Music’s global digital business. Other notable executives include former Google DeepMind music lead Björn Winckler and CTO Brian Whitman, who previously founded The Echo Nest—a music intelligence platform acquired by Spotify in 2014 that played a key role in developing the streaming service’s early personalization features.

In a November 20 blog post, Warner Music Group CEO Robert Kyncl outlined the company’s rigorous criteria for AI partnerships. He stressed three non-negotiable principles: any AI partner must train its models only on licensed content, financial terms must properly reflect the value of the music used, and creators must have the ability to opt in before their vocal or visual identity is utilized in AI-generated material. Kyncl framed this moment as the dawn of a new creative epoch, stating, “We are entering the next phase of [music] innovation. The democratization of music creation.” This framework mirrors a wider industry shift toward establishing ethical and economic guardrails around rapidly advancing AI capabilities.

The collective endorsement of Klay signals a notable shift from the litigious stance that previously characterized major labels’ dealings with AI music firms. Unauthorized use of copyrighted material to train AI systems has been a major point of legal contention, sparking lawsuits across the entertainment world. For instance, in June of last year, the Recording Industry Association of America (RIAA)—the trade organization representing the U.S. music industry—revealed that the three majors had filed suits against AI startups Udio and Suno. Although Billboard reported in June that all three labels were in licensing talks with both companies, Universal confirmed a settlement with Udio on October 30, and the Los Angeles Times noted in November that Warner had also reached an agreement. These resolutions indicate a strategic industry-wide pivot from confrontation to controlled collaboration.