Suno teams up with Warner Music, but ends free downloads

Music labels spent the last year dragging AI music makers through federal court. Now, they are shaking hands and signing multi-million-dollar deals instead.

Suno and Warner Music Group (WMG) just announced a comprehensive partnership that officially settles WMG's copyright infringement lawsuit against the AI music startup. As part of the pact, WMG also sold live concert discovery platform Songkick to Suno for an undisclosed sum.

From copyright lawsuits to artist opt-ins

Last year, WMG, Universal Music Group, and Sony Music sued Suno and rival Udio for allegedly scraping their copyrighted tracks without permission. Last week, WMG settled with Udio. Now, it has fully resolved its battle with Suno.

Under the new deal, Suno will build a brand-new generation of music models trained on licensed WMG music, scheduled to roll out next year and replace its existing models. Suno claims this engine will surpass its current v5 model.

WMG artists, a roster that includes Lady Gaga, Coldplay, The Weeknd, and Sabrina Carpenter, can opt in to let their names, images, voices, and compositions be used in AI-generated tracks, unlocking a new revenue stream whenever fans build songs around their sound.

There is a catch for casual listeners, though. Suno is tightening up its platform: downloading generated audio will soon require a paid subscription, with specific download limits per tier. Free users will be restricted to playing and sharing tracks inside the platform, while Suno Studio will keep its unlimited downloads.

Flush with cash, Suno just announced a $250 million Series C round last week led by Menlo Ventures and Nvidia’s NVentures, valuing the startup at $2.45 billion. WMG CEO Robert Kyncl called the deal a victory for the creative community that expands revenue as Suno approaches 100 million creators.

Why it matters

The Wild West era of generative AI audio is officially coming to a close. For everyday creators, the immediate takeaway is clear: the days of churning out and downloading unlimited free AI tracks are numbered. If you want audio files for your videos, games, or projects, you will need to pay for a subscription. In return, you get commercially safer tracks and legitimate access to iconic pop-star vocals and styles without fearing a DMCA takedown.

For the music industry, WMG's strategy looks brilliant. Pushing lawsuits to a verdict would have taken years while nearly 100 million people kept playing with Suno anyway. By settling with both Udio and Suno in back-to-back weeks, WMG turned potential existential threats into licensed royalty streams.

We think this also puts enormous pressure on Universal and Sony, who are reportedly already at the negotiating table. By acquiring Songkick and partnering with the world's biggest label, Suno is transforming from a fun viral web toy into an end-to-end music powerhouse that connects bedroom prompt engineers to live concert tours.