All three major labels reach licensing deal with AI music startup Klay

What happened. BrooklynVegan reports that Bloomberg has reported a deal between all three major record labels — Universal Music Group, Sony, and Warner — and Klay, an AI music startup led by producer Ary Attie that describes itself as an "ethical AI" company. Klay is building a product that lets users remake songs in different styles using AI; per Warner's press release, it is powered by KLAY's Large Music Model "trained entirely on licensed music" and is framed as a subscription product where participating artists and songwriters are "properly recognized and rewarded."

Why it matters to creators. This is the first time all three majors have licensed catalogues to one AI music startup, following the pattern of the majors suing AI music firms (Suno, Udio) and then cutting licensing deals with them. It sets a market signal that licensed, consent-based AI music products are the industry-preferred model — but compensation terms, payout amounts, and participation numbers have not been disclosed, and BrooklynVegan notes it remains unclear whether artists can opt out of having their work remade or trained on.

What is not yet known. The deal terms, opt-out mechanics, and how revenue is split among labels, songwriters, and performing artists are not public. The reporting is via Bloomberg as covered by BrooklynVegan; the underlying Bloomberg article was not independently read.