Udio signs AI licensing deal with Merlin, bringing up to 15% of global music into its training pipeline

Key Highlights

• Udio secured a licensing agreement with Merlin, representing independent labels across 70+ countries and 15% of global recorded music sales.
• The deal follows Udio’s settlements with Universal Music Group in October and Warner Music Group in November, both of which dropped copyright lawsuits.
• Participating artists opt in and receive compensation, with terms designed to protect human artistry.

Merlin Network, the nonprofit digital rights agency representing independent labels worldwide, announced a licensing partnership with AI music platform Udio on January 20, 2026. The agreement allows Udio to train AI models on music from participating Merlin members, with compensation flowing back to labels and artists. This deal follows UMG’s settlement with Udio in October and Warner-Udio’s collaboration in November. Udio is now hiring a Head of Artist Partnerships in Los Angeles or New York.

Charlie Lexton, CEO of Merlin, emphasized the foundation of the partnership. “”As AI develops, it is critical to Merlin that we work with partners who respect artists, their work, and the requirement to license music,”” Lexton said. Udio CEO Andrew Sanchez called independent artists “”the driving force”” of the deal. The agreement builds on Merlin’s prior AI licensing deal with ElevenLabs.

Udio’s trajectory mirrors a broader industry shift. After the RIAA’s Suno lawsuit in mid-2024, major labels began negotiating deals rather than pursuing prolonged litigation. Meanwhile, an indie artist class action continues against both Suno and Udio, raising questions about whether independent creators will see equitable treatment under these new frameworks.