YouTube is in negotiations with major record labels to license music for its artificial intelligence (AI) tools that can create music similar to popular artists. This comes as the music industry grapples with the potential and risks of AI-generated music.
Upfront Payments for Training AI
YouTube, owned by Google, is looking to expand its AI music project after a limited test run last year. The company is offering upfront cash payments to Sony, Warner Music Group, and Universal Music Group in exchange for the rights to use their artists’ music to train AI software for generating new music.
Artists’ Concerns and Record Labels’ Dilemma
Many artists, however, are apprehensive about AI music generation, fearing it could devalue their work. Music labels, on the other hand, are caught between wanting to avoid being seen as resistant to innovation and protecting their artists’ interests.
Limited Success in Initial Test
YouTube’s initial attempt, called Dream Track, allowed users to create short music clips based on text prompts imitating the styles of specific artists. However, with only 10 artists participating, including Charli XCX and Troye Sivan, the test phase had limited scope.
YouTube’s Ambitions and Next Steps
YouTube aims to sign up “dozens” of artists for its new AI music tool planned for launch this year. The company claims it’s not expanding Dream Track but exploring “other experiments” with labels.
These efforts coincide with similar deals in other media sectors. OpenAI, an AI research company, is striking agreements with media groups worth tens of millions of dollars to license content for training large language models used in AI products like chatbots.
Licensing Details and Potential Applications
The music industry deals would differ. Unlike blanket licenses, they would encompass a specific set of artists, with labels responsible for encouraging participation. The financial terms are still under negotiation, but they’re expected to resemble one-time payments similar to deals with social media platforms, rather than the royalty-based structures used by streaming services.
YouTube’s new AI tool, likely to have a different name than Dream Track, could be integrated with its Shorts platform, a competitor to TikTok.
Music Industry’s Stance on AI
This move comes amidst a lawsuit filed by major record labels against AI startups Suno and Udio for allegedly using copyrighted recordings to train their AI models. The labels are seeking significant compensation for each copyrighted work infringed.
Having faced near-extinction due to music piracy in the early 2000s, the industry is taking a proactive approach with AI. Labels are keen to participate in licensed AI-powered music creation while ensuring they are financially compensated.
While Sony Music wasn’t involved in the initial phase, they are now in talks with YouTube. Warner and Universal, whose artists participated in the test, are also discussing an expansion of the product.
The use of AI in music creation has sparked debate within the artist community. In April, over 200 musicians, including Billie Eilish, signed an open letter expressing concerns that “unchecked, AI will set in motion a race to the bottom” that could diminish the value of their work and fair compensation.
Despite these concerns, YouTube maintains its commitment to exploring AI and music, stating, “We are always testing new ideas and learning from our experiments; it’s an important part of our innovation process. We will continue on this path with AI and music as we build for the future.”
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