Warner Music has reached an agreement with AI music startup Suno resolving the lawsuit.

Warner Music Group announced on Tuesday that it has reached a deal with Suno, settling its copyright lawsuit against the AI music startup. The agreement represents a dramatic shift in the music industry’s approach to artificial intelligence, transforming one of the most contentious legal battles into a strategic partnership. By officially dropping its “fair use” defense, Suno has effectively ended the legal standoff with one of its most aggressive adversaries. Warner CEO Robert Kyncl described the arrangement as beneficial for everyone involved, emphasizing that it will expand revenue opportunities while delivering new fan experiences. The settlement comes shortly after Suno announced a massive $250 million funding round at a $2.45 billion valuation, demonstrating strong investor confidence in AI music technology despite the ongoing legal challenges.

The New Licensing Framework and Platform Changes

The partnership establishes a fundamentally different operating model for Suno moving forward. Under the new framework, the startup will implement a strict “opt-in” mechanism for WMG artists and songwriters, reversing Suno’s previous “scrape everything” approach. Starting in 2026, Suno will launch more advanced licensed models built entirely on authorized data, which will replace all existing models on the platform. As part of the deal, only Suno’s paid tier subscribers will be able to download their creations off-platform, and paid users will also have download caps, having to pay more for additional downloads. Free tier users will be restricted to streaming and sharing their AI-generated songs only within the Suno ecosystem. These restrictions appear designed to address concerns about AI-generated tracks flooding streaming services with unauthorized content.

Industry Implications and Artist Concerns

Warner’s settlement with Suno follows a similar agreement the label reached last week with rival AI platform Udio, suggesting a coordinated industry strategy is emerging. The lawsuit was originally filed in 2024 by the Recording Industry Association of America, with labels accusing Udio and Suno of profiting from copying existing songs and producing tracks indistinguishable from work by real artists. While Universal Music Group and Sony Music Entertainment remain in litigation with these platforms, reports indicate they are also in settlement discussions. However, independent artists and advocacy groups have expressed skepticism about these deals. The Music Artists Coalition, founded by legendary manager Irving Azoff, cautioned that previous industry partnerships have left artists with minimal benefits, emphasizing the need for creative control, fair compensation, and transparency about how artist catalogs are being licensed. As part of the broader partnership, Suno also acquired Songkick, Warner’s live music discovery platform, signaling ambitions to expand beyond AI music generation into the broader music ecosystem.