Universal Music Group (UMG) and prominent AI audio startup ElevenLabs are officially going into business together, marking a significant new chapter in the complex relationship between major record labels and artificial intelligence developers.
The world’s largest music company has struck an expansive licensing agreement with ElevenLabs that will see the technology startup launch an entirely new AI-powered music platform built directly on UMG’s vast catalog of recorded artists and compositions. According to the companies, the forthcoming platform will give music fans the legal tools to remix and mashup tracks from their favorite artists. Beyond simple track manipulation, the platform is designed to allow users to craft "new track interpretations" and personalized vocal experiences, signaling a profound shift in how listeners interact with commercial sound recordings. This dedicated platform is slated to be accompanied by a suite of other AI audio products that the two companies plan to develop collaboratively in the near future.
The partnership represents a deliberate move by a major music conglomerate to embrace consumer-facing generative AI tools under strict contractual frameworks and authorized licensing agreements, contrasting sharply with the aggressive legal battles that have characterized much of the music industry’s approach to technology companies over the past several years.
"The most exciting possibilities for AI and music are those that put artists, songwriters, and fans at the center," Sir Lucian Grainge, UMG’s Chairman and CEO, said in a statement detailing the agreement. "UMG and ElevenLabs are aligned that responsible AI can inspire discovery, deepen engagement between artists and fans, and unlock new revenue opportunities for the creative community. ElevenLabs’ leadership in AI audio brings a new dimension to our growing ecosystem of partners committed to expanding what’s creatively and commercially possible for human artistry."
The collaboration highlights a strategic pivot for major labels toward monetizing user-generated remixes and interactive fan experiences, rather than trying to suppress them entirely. By partnering with a major developer like ElevenLabs, UMG aims to channel the immense public appetite for AI audio tools into licensed, revenue-generating channels that ensure both the company and its roster of creators receive financial compensation.
Echoing these sentiments, ElevenLabs co-founder and CEO Mati Staniszewski emphasized the technological and commercial potential of the alliance. "AI opens up incredible possibilities for interacting with our favorite music and artists," Staniszewski added. "By combining UMG’s global community and rights management expertise, with our AI models and products, we’ll enable artists and songwriters to create powerful new experiences for their fans, and ensure they are fairly compensated."
The high-profile announcement arrived just a day after rival generative audio company Suno launched its own first label-powered models, backed by deals with Warner Music Group, Believe, and BMG. However, the ElevenLabs arrangement differs structurally from UMG’s other recent deals with AI-powered music startups—such as the remixing tool Hook and the AI music generator Udio—because it involves deep collaboration on an entirely new platform rather than merely licensing catalog content for existing third-party applications. Despite these evolving business arrangements across the broader industry, legal tensions remain high; UMG and Sony Music Entertainment are still actively fighting Suno in federal court over alleged widespread copyright infringement.
ElevenLabs has experienced staggering financial and commercial growth amid the broader boom in artificial intelligence technologies. The company raised an impressive $500 million in a Series D funding round earlier this year, securing a massive $11 billion valuation. This milestone came just five months after the company, which originally launched in 2022, offered its employees a $100 million tender offer at a $6.6 billion valuation.
Known initially for its pioneering voice cloning and text-to-speech technologies, ElevenLabs has increasingly expanded its footprint into mainstream entertainment and media. The startup has built a reputation for securing high-profile intellectual property partnerships, including licensing voices from prominent figures such as Matthew McConaughey and Michael Caine, as well as partnering with Hasbro to utilize its suite of classic characters, ranging from the Transformers to Mr. Potato Head and Clue characters.
Beyond its voice and character licensing deals, ElevenLabs has steadily delved deeper into the professional and consumer music spaces. The company previously launched its first volume of "The Eleven Album," a curated collection of original songs co-created with legendary singers such as Liza Minnelli and Art Garfunkel, alongside various AI-generated musical acts. That project was introduced alongside a proprietary AI model designed to produce studio-quality musical compositions, with the startup following up on that momentum by releasing its second volume of AI-assisted music projects in April.
By combining ElevenLabs’ cutting-edge audio generation technology with Universal Music Group’s unrivaled global catalog, intellectual property rights management, and industry influence, the new partnership aims to set a commercial benchmark for how major record labels and artificial intelligence developers can coexist and innovate within the modern digital landscape.
