YouTube Negotiates With Record Labels for AI Song Generation Rights

YouTube is reportedly in talks with multiple record labels to strike a deal that will let it use copyrighted songs to train its artificial intelligence (AI) tools. The Google-owned platform is working on several new AI features that it plans to release by the end of this year. Last year, the video streaming platform announced that it would be testing an AI song generator named Dream Track for Shorts; however, it was never made public. The report now highlights that this deal could be for separate AI tools that can also generate songs.

According to a Financial Times report, YouTube is already in discussions with three separate record labels to license their songs. Citing people familiar with the matter, the publication states that the company had offered lump sums of cash to Sony, Warner, and Universal. It is said that the deal asks for the rights to use these copyrighted songs to train its AI models and to let it generate songs that might be similar in style to them.

However, this might be difficult to achieve. The report highlights that artists do not favor such deals as they fear it might undermine their talent and permanently impact their careers. At the same time, the record labels appear to have a different opinion.

The industry is wrestling with this. Technically, the companies have the copyrights, but they have to think through how to play them. They don't want to be seen as a Luddite, an unnamed executive at a large music company explained.

The report explained the nature of these deals by claiming that YouTube would pay the record labels a one-time fee instead of the royalty-based fee Spotify and Apple pay. Further, the video-streaming giant is unlikely to get a blanket license with a record label, the report stated. Instead, it is said that the company might get only access to songs of select artists who agree to be part of this deal.

Last year, YouTube announced its testing of Dream Track, an AI-powered song generator aimed at its vertical video format Shorts; this deal is said to be for separate AI tools. However, the functionality will remain the same. The company is reportedly looking to onboard dozens of artists to train its AI models, which are planned to be released later this year.