Udio licenses Merlin recordings for AI training

The agreement covers only recordings from Merlin members that choose to participate, according to a press release issued on Tuesday. Udio can use that music to develop AI systems, and compensation flows back to those labels and artists. The companies said the terms are intended to protect what they called 'the value of human artistry.'

What Udio signed with Merlin

Merlin is an independent music licensing group. It negotiates digital deals for independent labels across more than 70 countries, and its members account for 15% of global recorded music sales, according to Music Business Worldwide. It also negotiates digital licensing deals with Spotify, Apple Music, Meta and YouTube.

Charlie Lexton became chief executive at the start of 2026, succeeding Jeremy Sirota, who stepped down at the end of 2025 after six years at the company. Andrew Sanchez, Udio's co-founder and chief executive, said independent artists 'are the driving force of this partnership.' The two companies said they would work together on new forms of creative expression but gave no details.

Lexton said Merlin and Udio had focused on consent and fair remuneration. 'As AI develops, it is critical to Merlin that we work with partners who respect artists, their work, and the requirement to license music,' he said. The Udio agreement is Merlin's latest AI deal, after a partnership with ElevenLabs for its Eleven Music platform.

Why the deal matters

The Merlin agreement follows Udio's settlements with Universal Music Group in October 2025 and Warner Music Group in November 2025. Both majors had sued Udio first and dropped their suits after reaching licensing agreements for an AI music platform Udio plans to launch this year. Sony Music is still suing Udio.

The RIAA sued Udio and Suno on behalf of all three major labels in mid-2024, alleging mass infringement. The claims were filed as $500 million copyright cases.

Billboard reported that the UMG and Warner deals were also opt-in, and that clearing many valuable hits will be an uphill battle: a modern pop or hip-hop song can carry one to 10 or more songwriters, often signed to different companies, and a single refusal disqualifies the whole track. Udio has vowed to retire its current model and launch a new one trained only on licensed works. Billboard reported that the licensing deals require Udio to pivot from text-prompt song generation to a fan platform where users can remix, mash up or prompt licensed tracks, and noted that it remains unclear whether models trained only on licensed works will match current output.

What happens next

Udio says the licensed platform will launch this year. It recently posted a job listing for a Head of Artist Partnerships in Los Angeles or New York to manage relationships with artists, managers, labels and publishers.