Spotify Gets Green Light for AI Covers From Universal

15

Suno, watch your back.

Spotify and Universal Music Group shook hands Thursday. Fans can now make AI covers. Remixes too. Using generative tech on your favorite tracks.

It launches as a paid add-on. Premium subscribers only.

The catch? Revenue share.

Artists get a cut. Participating ones. The money comes from AI-generated music built on their catalog. Spotify isn’t dropping price tags or dates yet. Just confirmed the license exists.

They teased this last year. Working with the big three labels. Sony. Warner. And the independents like Merlin. The pitch was simple: build artist-first AI tools. Do it right. Upfront.

“Not by asking for forgiveness later.”

That’s how they put it. A clear swipe at competitors like Suno. Suno built first. Asked questions later. Spotify wants consent. Credit. Compensation.

Alex Norström, Spotify co-CEO, didn’t mince words.

“Through each technological transformation, we evolve the music ecosystem.”

Sir Lucian Grainge from UMG loved it too. Said it helps artists connect with fans. And yes. Another revenue stream.

Who is participating? Unknown.

Here’s the messy history. Suno and Udio built AI tools on shaky legal ground. They used data they arguably shouldn’t have had. Labels sued.

Big lawsuits.

Warner Music Group settled with Suno for $500 million last November. Universal settled with Udio not long after. Suno is still fighting copyright claims from Universal and Sony. Udio settled with Warner and Universal but still hasn’t sorted out Sony.

Spotify saw the demand. Saw the risk. Went straight to the label heads. Cut a deal.

Universal might be first. Or just the first announcement. Spotify won’t say which.