Sony, Warner and Universal considering settling with music generation AI companies Suno and Udio over licensing fees

The Recording Industry Association of America (RIAA), which represents major music companies, is in talks to license Suno and Udio, two AI-based music generation services, for copyright infringement in a lawsuit filed by the RIAA on behalf of the music companies. The music companies are looking for ways to compensate artists and may even acquire equity in Suno and Udio.
Record Labels in Talks to License Music to AI Firms Udio, Suno - Bloomberg
AI Music Copyright: Suno, Udio, Labels in Licensing Talks - WinBuzzer
https://winbuzzer.com/2025/06/01/ai-music-copyright-suno-udio-labels-in-licensing-talks-xcxwbn/
In June 2024, the RIAA sued AI-based music startups Suno and Udio for copyright infringement. The RIAA's move came at the expense of major music companies Sony Music Entertainment, Warner Music Group, and Universal Music Group.
Music-generating AI services 'Suno' and 'Udio' sued by major music companies such as Sony, Warner and Universal for copyright infringement - GIGAZINE

The damages could amount to up to $150,000 for each infringed work, and potentially billions of dollars in total, but Suno and Udio claim they are not simply copying music, but creating new music. Suno admits that it has used millions of songs for training, but says that this is permissible as fair use. Udio also argues that this is a 'classic fair use case.'
Although music companies have not accepted the AI companies' argument that this is fair use, they are apparently considering collecting licensing fees from the AI companies in order to somehow create a framework for monetizing the use.
It has also been pointed out that music companies may acquire small amounts of stock in AI companies.
Neither the music companies nor the AI companies have commented on the matter, so the progress is unclear.
in Note, Posted by logc_nt