YouTube is currently negotiating with the three major categories to get licensing contracts for its AI-generated song efforts. A new round of high-stakes negotiations are in the works.

In response to their claims bringing against conceptual AI companies Suno and Udio, both of whom are accused of using copyrighted music without authority to train their text-to-audio models, the discussions with Sony Music Entertainment, Warner Records, and Universal Music Group are taking place.

The lawsuits, spearheaded by the Recording Industry Association of America ( RIAA ), underscore the music industry’s fierce defense of intellectual property rights. According to Suno and Udio, they allegedly copied a lot of audio recordings, breaking all applicable copyright laws, and causing a major industry backlash. As a result, YouTube aims to prevent related problems by obtaining appropriate licenses.

According to a report from the Financial Times, YouTube is offering large lump-sum payments to main labels to permit their music, making sure that its AI tools, which may copy the styles of well-known artists, are developed morally and legally. The strategy emphasizes one-time payment rather than continuing revenues, in contrast to previous agreements between record names and social media platforms like Meta and TikTok.

A select group of designers on YouTube were able to create 30-second music clips that mimic modern giants like Charli XCX and John Legend in November with the launch of Dream Track. YouTube does not intend to expand Dream Track, but the company appears interested in looking into new AI-driven audio projects as long as it can get the necessary privileges from designers and brands.

A crucial element of YouTube’s negotiations, per FT, involves obtaining artist- by- artist licensing, which may show challenging given the moral concerns surrounding AI- generated music. Earlier this year over 200 designers, including Billie Eilish, FINNEAS and Chase &amp, Status, signed an open letter calling for stricter regulations to protect human imagination.

Despite such difficulties, YouTube’s initiative was set a precedent for how the music business adjusts to AI. YouTube is challenging many of the issues raised by AI-generated content by offering lump-sum payments and possibly implementing an opt-in model whereby specific performers can choose to have their music used in AI projects.