Universal, Sony and Warner License Catalogs to AI Streaming Startup Klay
Universal Music Group, Sony Music and Warner Music Group have licensed portions of their catalogs to Klay, an AI-driven streaming startup that will let users remake songs using artificial intelligence, Bloomberg reported on Nov. 19, 2025. People familiar with the agreements told Bloomberg that the deals cover rights needed for on-platform AI remixes and represent an unusual early embrace of generative audio by major labels. Klay is listed with the ticker KLAY.
The move matters because it gives established rights holders a direct route into AI-native music experiences and could create fresh revenue streams through licensing and usage fees. It also raises questions about royalty splits, artist consent and how copyright frameworks will adapt to user-generated AI remakes. The deals may accelerate investment in AI music platforms and set precedents for how labels negotiate generative-audio rights going forward.