(Reuters) -Warner Music Group has settled a copyright infringement case with artificial intelligence company Udio and will jointly launch a new platform for AI song creation, the companies said on Wednesday.

Warner's deal follows a similar settlement last month between rival Universal Music Group and Udio, which resolved a lawsuit accusing the startup of using copyrighted recordings without permission to train its models, at a time when a surge in AI-generated tracks has increased pressure on the industry to clearly label such content.

For record labels, such agreements with AI developers present an opportunity to expand revenue sources, diminish litigation costs, and utilize sophisticated AI instruments for accelerated song development.

Under Warner's agreement with Udio, the companies plan to roll out a music-generation platform in 2026 that will be trained on and offer output based on licensed and authorized recordings.