Spotify and Universal Music Group Strike Landmark AI Remix Deal for Premium Subscribers

Spotify has struck a deal with Universal Music Group to let subscribers create AI-generated covers and remixes of songs, marking the first time the audio-streaming giant will allow users to produce AI content using its platform. The tool will launch as a paid add-on available only to Spotify's Premium subscribers, offering a revenue share with participating artists for AI-generated music based on their work. The companies did not disclose the financial terms of the deal or which artists will participate. Universal Music is home to artists including Taylor Swift, Ariana Grande, Drake, and Billie Eilish. Spotify's stock surged 13% Thursday after executives unveiled the strategy alongside a slew of new partnerships and products. Suno and Udio built large consumer products around prompt-generated songs, then faced lawsuits from major labels. Warner Music Group has settled with both companies, and Universal Music Group has settled with Udio. Spotify is taking the opposite route — licensing first and launching later.