Klay has secured AI music licensing deals with Warner, Sony, and Universal – but what about the independent artists powering much of today’s electronic music?
Los Angeles-based AI start-up Klay has made history by securing AI music licensing deals with Warner Music Group, Sony Music Entertainment, and Universal Music Group. The agreements make Klay the first AI company to partner with all three major labels, creating a precedent for ethical AI music use.
Klay’s platform uses its patented Large Music Model, trained entirely on licensed material. The company says the deals will “reimagine listening with immersive, interactive tools,” offering AI-driven music experiences while protecting the rights of artists, songwriters, and rightsholders.
In a sector where many AI music projects face accusations of unlicensed scraping, Klay’s agreements position the start-up as a model for responsible AI music licensing. The company emphasises collaboration with the industry to enhance human creativity and improve the consumer experience.
The majors are secured – but independent artists remain largely unprotected. Dance music labels, small publishers, and SoundCloud creators exist outside the major-label system. Klay says it plans to expand its licensing approach to independent labels and artists, but no formal structure is yet in place.
Other AI start-ups, including Suno and Udio, are also exploring deals with major labels. Udio recently settled a copyright lawsuit with the majors before signing its own licensing agreement. The question of AI music licensing independent artists remains urgent: without clear agreements, smaller creators could see their work used without compensation while majors benefit first. Read our thoughts on that here
Klay’s milestone shows that whist licensing deals with major labels is possible, independent artists and the labels in the underground are still left waiting. The next challenge for the AI sector will be integrating the broader music community into the licensing ecosystem before unlicensed use becomes the norm.
