Two parties are set to launch an AI-powered music creation platform next year.

Universal Music Group (UMG) announced it has entered into an “industry-first strategic agreement” with AI startup Udio to “resolve copyright infringement lawsuits” and license music for a new artificial intelligence music platform. This move is among several anticipated licensing deals expected to be finalized in the coming weeks as the music industry grapples with the challenges posed by AI.

The agreement includes a form of compensation that “will create additional revenue opportunities for UMG artists and songwriters.” Udio, the company behind the viral track “BBL Drizzy,” plans to roll out the platform as a subscription service next year. Just last year, Universal Music Group—alongside industry peers Sony and Warner—filed a lawsuit against Udio and another AI startup, Suno, alleging “massive” copyright infringement.

UMG represents global superstars such as Taylor Swift, Bad Bunny, and Ariana Grande. The company stated that this new AI music tool will “revolutionize user engagement,” enabling creators to personalize, stream, and share music in innovative ways. Subscription pricing for the platform has not yet been disclosed.

During the platform’s transition phase, Udio’s existing music generation tools—which allow users to create songs by simply inputting a few lines of text—will remain accessible. However, all content generated will be confined within a “walled garden” ecosystem, with added security measures such as audio fingerprinting to prevent unauthorized use.