Spotify announced a partnership with Universal Music Group (UMG) on Thursday that will let fans create AI-generated covers and remixes of songs through a new paid feature. The tool will be exclusive to Spotify Premium subscribers, with participating artists receiving a cut of revenue from AI-created music based on their work. Neither company disclosed pricing or a specific launch date, though they revealed a licensing agreement has been finalized. Spotify had previously announced plans to develop AI music tools in collaboration with major labels including Sony Music Group, Warner Music Group, Merlin, and Believe, emphasizing they would pursue "upfront agreements, not by asking for forgiveness later"—a clear jab at competitors like Suno that built AI music generators without securing proper licensing first.
The deal establishes that artists and rights holders maintain control over whether their music can be used in AI-generated content, and those who opt in will receive fair compensation. Spotify co-CEO Alex Norström stated the company is building this feature "grounded in consent, credit, and compensation for the artists and songwriters that take part." UMG Chairman and CEO Sir Lucian Grainge framed the development as an opportunity for artists to strengthen fan connections while generating additional income streams. The companies have not yet announced which UMG artists have agreed to participate in the program.
This announcement comes as competing AI music services have faced significant legal challenges. Suno and Udio pioneered AI music creation tools but did so without licensing agreements from major labels, prompting swift legal action. Suno settled a $500 million lawsuit with Warner Music Group in November, shortly after Universal Music Group reached its own settlement with Udio. Suno continues to face ongoing copyright claims from UMG. By securing licensing deals upfront with major publishers, Spotify appears positioned to avoid the legal pitfalls that have plagued its competitors in the AI music space.