Universal Music Group and ElevenLabs to Launch AI-Powered Music Platform in Expansive Licensing Deal

Universal Music Group is moving beyond courtroom battles over artificial intelligence, striking a sweeping licensing partnership with AI audio developer ElevenLabs. The two companies intend to launch an AI-driven music service anchored in UMG's extensive artist catalog. Under the arrangement, ElevenLabs will build a platform allowing listeners to remix and mash up recordings, produce what the partners describe as "new track interpretations," and participate in "personalized vocal experiences." Additional AI audio products are expected to follow as the collaboration develops. The deal signals a strategic pivot for UMG, which until now has largely confronted AI through litigation rather than collaboration. UMG, home to artists ranging from Taylor Swift to Billie Eilish, has spent much of the past two years filing suit against AI developers it accuses of training models on copyrighted recordings without permission.

Sir Lucian Grainge, UMG's Chairman and CEO, framed the agreement as a model for innovation that keeps creators at the center. He said the most promising applications of AI in music are those that prioritize artists, songwriters, and fans. According to Grainge, both companies share the conviction that responsibly deployed AI can drive music discovery, strengthen ties between artists and their audiences, and open fresh revenue channels for the creative community. He also praised ElevenLabs' reputation in AI audio, calling the company a valuable addition to UMG's expanding network of partners. Mati Staniszewski, ElevenLabs' co-founder and CEO, echoed that sentiment, describing AI as offering remarkable opportunities for fan engagement. He said merging UMG's global reach and rights management expertise with ElevenLabs' AI models would empower artists and songwriters to craft compelling new experiences while ensuring they are fairly compensated. Staniszewski co-founded ElevenLabs in 2022 with Piotr Dabkowski; the London-based startup has since become one of the most valuable private companies in the AI audio space.

The announcement came just one day after Suno introduced its first label-backed models, supported by Warner Music Group, Believe, and BMG. Unlike UMG's prior deals with AI music startups such as the remixing tool Hook and the generator Udio, the ElevenLabs arrangement centers on building an entirely new platform from the ground up. Meanwhile, UMG and Sony Music Entertainment continue to pursue copyright infringement lawsuits against Suno. ElevenLabs raised $500 million in a Series D round earlier this year at an $11 billion valuation, just five months after offering employees a $100 million tender at a $6.6 billion valuation. The company, which licenses voices and intellectual property including Hasbro's character portfolio, has been steadily expanding into music. It released the first volume of "The Eleven Album," featuring original songs made with artists such as Liza Minnelli and Art Garfunkel alongside AI-generated acts, paired with a model capable of producing "studio-quality compositions." A second volume followed in April.

Industry observers suggest the UMG-ElevenLabs alliance could become a blueprint for how major labels monetize AI-generated fan content. As one music technology analyst, speaking on condition of anonymity, put it: "Labels are realizing that fighting AI in court only goes so far. The real opportunity lies in building licensed sandboxes where fans can play, and where every remix or mashup generates a royalty." That approach contrasts sharply with the ongoing legal battles against Suno, revealing a dual strategy: litigate against unlicensed AI training while partnering with developers willing to operate within licensing frameworks. For ElevenLabs, gaining access to UMG's catalog provides an unparalleled supply of commercially viable music, potentially accelerating its evolution from a voice-cloning tool into a comprehensive music creation ecosystem. The partnership also raises questions about how royalties will be split among artists, songwriters, and the platform itself, a detail neither company has yet disclosed.