Warner Music Drops Lawsuit Against Suno, Only to Cut Deal With Same AI Tech It Tried to Shut Down

Warner Music Group (WMG) has taken a major step toward defining how artificial intelligence will operate in the music industry, withdrawing its copyright lawsuit against AI platform Suno and replacing it with a sweeping licensing and collaboration agreement.

The deal marks a decisive shift from litigation to structured cooperation and may serve as a template for how major record labels engage with AI music platforms in the future.

Under the agreement, Suno will launch 'new, more advanced and licensed models' for AI-generated music in 2026. These systems will replace all existing models on the platform and will operate under a licensed framework that gives WMG artists and songwriters full authority over the use of their names, likenesses, voices and compositions.

The arrangement turns AI-generated songs into an opt-in process, placing artistic control directly in the hands of creators.

In a post on Instagram, WMG chief executive Robert Kyncl said the new partnership is 'a victory for the creative community that benefits everyone'.

'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,' he said.

Kyncl added that the company is shaping licensed models that strengthen revenue and deliver new fan experiences, positioning AI as a tool that supports artists when it respects the value of their work.

Suno chief executive Mikey Shulman echoed the sentiment in the companies' joint press release, saying the partnership will 'unlock a bigger, richer Suno experience for music lovers'.

He noted that the collaboration will support new creative tools, more interactive features and expanded opportunities for artists to engage with fans.

What Suno Is and How It Works

Suno, launched in late 2023 by technologists and researchers, has become one of the leading generative AI music platforms in the world. It allows users to type textual prompts and receive fully produced tracks complete with instrumentation and vocals. The platform offers features such as remastering, audio extension and a persona tool that keeps vocal traits consistent across multiple songs.

Its growth has been rapid. Suno has reportedly gained close to 100 million users worldwide. In 2025, it secured £189 million ($250 million) in funding at a valuation of £1.86 billion ($2.45 billion).

Its output has already made an impact on mainstream music culture. One of its AI-generated artists, Xania Monet, recently charted on Billboard's R&B Digital Song Sales chart, highlighting how quickly AI-generated acts can enter competitive music markets.

Why the Labels Sued

The conflict began in mid-2024 when WMG, Universal Music Group and Sony Music jointly sued Suno and rival platform Udio. The labels alleged that the AI companies trained their systems on extensive catalogues of copyrighted music without permission.

They argued this enabled the platforms to generate songs that resembled protected recordings, potentially confusing listeners and undermining human artistry.

The suits represented one of the most aggressive legal challenges to AI in the entertainment world. Damages were estimated at up to £379 million ($500 million).

The companies insisted that unlicensed AI training could destabilise royalty systems, overwhelm streaming platforms with automated content and devalue work created by human musicians.

While WMG has now resolved its dispute with Suno, other lawsuits involving different AI platforms are still active.

A New Framework for AI in Music

The WMG and Suno partnership is being closely watched as a possible model for how the music industry may adapt to AI. Rather than trying to eliminate AI entirely, major labels are beginning to explore a system in which AI training and output are fully licensed and governed by artist permission.

However, concerns persist. Some rights groups warn that even licensed AI could flood digital platforms with automated music and make it harder for new human artists to compete. Others note that AI-generated lyrics may still risk replicating copyrighted text without proper consent.

Despite these challenges, the partnership represents a deliberate attempt to balance innovation with artist protection. Both companies have framed the agreement as a way of using AI to benefit creators instead of bypassing them.

What Happens Next

Suno will introduce its licensed models in 2026, discontinuing all existing systems. The company will also implement new download rules. Free-tier users will no longer be able to download generated tracks, while paid users will face monthly download limits with the option to purchase additional downloads.

Suno will continue to operate Songkick as a major concert and event discovery platform. The company is expected to integrate its AI-generated music tools with live performance and fan-engagement features.

WMG and Suno say their goal is to build the first large-scale licensed AI music ecosystem that protects creative rights, compensates artists and enriches how fans interact with music.

With more than 100 million users and growing global influence, Suno now sits at the centre of one of the most significant technological shifts in modern music. With WMG's support, the future of AI-generated music may increasingly be shaped through collaboration rather than courtroom battles.