Warner Music Group turned legal foes into collaborators by securing licensing agreements with AI music startups Suno and Udio, signaling a dramatic shift in how Hip-Hop and the broader music industry may evolve in the digital age.

The label, which had been locked in copyright disputes with both companies, reversed course by announcing back-to-back partnerships, first settling with Udio last week and then revealing a new alliance with Suno, which includes handing over ownership of live music discovery platform Songkick.

“We’re unwaveringly committed to the protection of the rights of our artists and songwriters, and Udio has taken meaningful steps to ensure that the music on its service will be authorized and licensed,” said Warner CEO Robert Kyncl.

The turnaround is striking. Just months ago, Warner joined Universal Music Group and Sony in accusing Suno and Udio of using copyrighted material without permission to train their AI models.

Now, Warner is the first to settle and partner, leaving competitors scrambling to catch up.

“This landmark pact with Suno is a victory for the creative community that benefits everyone,” Kyncl added. “With Suno rapidly scaling, both in users and monetization, we’ve seized this opportunity to shape models that expand revenue and deliver new fan experiences.”

The deal with Suno comes on the heels of a $250 million Series C funding round that valued the company at $2.45 billion. The round was led by Menlo Ventures and included backing from Nvidia’s NVentures.

But beyond the dollars, the implications for Hip-Hop are massive.

These platforms will allow users to remix, cover or generate entirely new songs using the actual voices and compositions of Warner artists who choose to participate. That could include the likes of Lady Gaga, The Weeknd and Sabrina Carpenter.

Warner has emphasized that artists will retain “full control over whether and how their names, images, likenesses, voices, and compositions are used in new AI-generated music.”

That level of oversight is essential in Hip-Hop, where creative identity and authenticity are central to the culture. Udio co-founder and CEO Andrew Sanchez framed the partnership as a significant step forward for the music business.

“This partnership is a crucial step towards realizing a future in which technology amplifies creativity and unlocks new opportunities for artists and songwriters. Our new platform will enable experiences where fans can create alongside their favorite artists and make extraordinary music in an environment that offers artists control and connection.”

The Suno deal also includes a strategic handoff of Songkick, which Warner acquired in 2017.

By transferring the live event platform to Suno, Warner is aligning AI-generated music with real-world performance opportunities, potentially creating a bridge from digital creativity to physical stages.

Starting in 2025, Suno plans to roll out “more advanced and licensed models” to replace its current offerings. Under the new system, free users will be able to play and share songs, but downloading will require a paid subscription—setting up a monetization model that benefits both the tech company and Warner.

The industry’s rapid pivot from litigation to collaboration highlights how quickly the AI music narrative has changed. Instead of trying to shut down these platforms, Warner is now investing in them and shaping how they operate.

For Hip-Hop producers and beatmakers, this opens access to tools built on major-label catalogs, similar to how sampling technology revolutionized the genre in the 1980s and 1990s.

Both Suno and Udio, with built-in social features, aim to create communities where creators can share and collaborate on new music.

While Universal and Sony are reportedly still in talks to resolve their own legal battles with Suno and Udio, Warner’s decision to move first may give them a long-term advantage.

The new music creation platform with Udio is expected to launch in 2026.