YouTube in talks with record labels to license songs for AI tools

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YouTube Music logo on smartphone, next to headphones and Nest Mini (2)

Edgar Cervantes / Android Authority

TL;DR

  • YouTube is negotiating with major record labels to license their songs for training AI music generation tools.
  • Artists are concerned about AI undervaluing their work, leading record labels to push for individual artist participation rather than blanket licenses.
  • People in the know have stated that YouTube is offering upfront payments to record labels, instead of setting up royalty-based agreements.

Leading video-sharing platform YouTube is currently trying to convince top record labels to license their songs for training the company’s AI music generation tools (via ArsTechnica). YouTube is reportedly offering upfront payments to major labels, like Warner, Sony, and Universal, to get more artists on board. The artists’ songs will be used to train YouTube’s AI software.

Artists have been pushing back against the use of AI in music creation, citing concerns about these tools undervaluing their work. Although record labels have copyrights to different artists’ songs, blanket licenses will likely not be the way they go, given that this could spark a lot of controversy. Instead, record companies would have to encourage individual artists to participate in this project.

Last year, YouTube began testing an AI tool called “Dream Track” that allowed users to generate short music clips by simply keying in a text-based prompt. The tool imitated the music, lyrics, and sounds of popular singers. Only around ten artists signed up to participate in this program, and the generative AI tool itself was rolled out to just a small group of creators.

ArsTechnica reports that this time around, people in the know have said YouTube wants to “sign up dozens of artists to roll out a new AI song generator this year.” Unlike in the case of the royalty-based agreements that record labels have with platforms like Apple and Spotify, YouTube’s deals with these companies and artists are more likely to involve a one-time payment for access to their music. However, as talks between the involved parties continue, the terms of the agreement, as well as payment details, could change. This comes at a time when AI companies like OpenAI are making deals with media companies to use their material to train AI models like ChatGPT.

Record labels — which are suing start-ups that have used their copyrighted material to train AI models illegally — are attempting to get ahead of how these tools are used by being involved in the licensing process and getting paid for the use of their copyrighted music.

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