YouTube is negotiating with major record labels to license their songs for AI tools that clone popular artists' music. The negotiations aim to secure the content needed to legally train AI song generators and launch new tools this year. Google-owned YouTube has offered upfront payments to major labels like Sony, Warner, and Universal to encourage artists to participate, but many remain opposed, fearing it could devalue their work.

Previously, YouTube tested an AI tool called 'Dream Track,' which allowed users to create music clips mimicking well-known artists. However, only a few artists participated, including Charli XCX and John Legend. YouTube now hopes to sign up dozens more artists to expand its AI song generator tool, though it won't carry the Dream Track brand.

Why does it matter?

These negotiations come as AI companies like OpenAI are making licensing agreements with media groups. The proposed music deals would involve one-off payments to labels rather than royalty-based arrangements. YouTube's AI tools could become part of its Shorts platform, competing with TikTok and other similar platforms. As these discussions continue, major labels are also suing AI startups for allegedly using copyrighted recordings without permission, seeking significant damages.