YouTube is reportedly talking to major labels for AI music deals

YouTube is reportedly holding licensing talks with major record labels for permission to use more songs to create AI-generated clones, according to the Financial Times.

The publisher, which cited "three people familiar with the matter", said YouTube "offered lump sums of cash" to Universal, Sony, and Warner, in order to persuade more artists to hand over their music for AI training. According to the FT, these would be one-off, case-by-case licensing payments, not blanket use deals.

Mashable has reached out to YouTube for comment.

The report notably comes just days after Universal, Warner, and Sony filed separate lawsuits with the Recording Industry Association of America (RIAA) against AI music generators Udio and Suno for alleged copyright infringement.

Last year, YouTube tested a tool called "Dream Tracks" for Shorts, which let a selection of creators generate unique songs in the style of several artists including Charli XCX, Troye Sivan, John Legend, Demi Lovato, Charlie Puth, Papoose, Sia, T-Pain, and Alec Benjamin, all with the agreement of the artists themselves. According to the FT, YouTube reportedly wants to expand its collection of artists and songs, but not for Dream Track.

YouTube's focus on AI-generated music comes under Google's broader strategy to compete with rivals in the space, from OpenAI's music generator Jukebox and video generator Sora, to Meta's dabbling in AudioCraft, an open-source AI music generator. In August 2023, Google announced its Music AI Incubator, a partnership with Universal — the label, which pulled its music from TikTok over "appropriate compensation for our artists and songwriters, protecting human artists from the harmful effects of AI," has called for streaming services to crack down on AI-generated music due to copyright concerns. Google also published YouTube's AI music principles, in which the company promises to "embrace it responsibly together with our music partners."

YouTube requires creators to label whether a video was made with generative AI, or risk receiving fines, having their content removed, or being suspended from the YouTube Partner Program — and artists can request the removal of AI-generated music uploaded without their consent.

Musicians have been vocal about the threats AI poses to human creativity and compensation, with 200 artists including Billie Eilish, Stevie Wonder, Nicki Minaj, Pearl Jam, Katy Perry, the estates of Bob Marley and Frank Sinatra, and more signing an open letter in April denouncing AI in music. The letter specifically called out companies that were "employing AI to sabotage creativity and undermine artists, songwriters, musicians and rightsholders," and especially those training AI models with music without the consent of the artist.

The report also comes at a time when licensing deals with AI companies is big business, including with online news and media sites — here's all the media companies that have licensing deals with OpenAI (so far).