Major record labels that sued AI music generators for copyright infringement two years ago are now licensing catalogs to the same companies, creating products that let consumers generate full songs from text prompts. Suno, valued at $5.4 billion, released its first models built with licensed music from Warner Music Group, BMG and Believe earlier this month, while rival Udio has agreements with Universal Music Group and Warner. The companies describe the arrangements as a potential new revenue stream for artists, but have not disclosed artist payment terms, the number of artists who opted in, or how much control individual musicians have over use of their work. The American Federation of Musicians sued Universal and Warner in June, alleging recordings performed by its members were licensed to Suno and Udio without payment or notice; the labels have sought dismissal. In 2024, Universal, Sony Music Entertainment and Warner sued Suno and Udio, alleging their models were trained on copyrighted songs, and settlements began the following year. Universal settled with Udio in October and became its partner, while Warner settled with both platforms in November and signed licensing deals. Udio also signed with Merlin and Kobalt; Suno signed with BMG in August and Believe this month. Spotify, which was not part of the lawsuits, reached agreements with Universal and Merlin. Sony continues to litigate against Suno and filed a second lawsuit against Udio over more than 30,000 recordings, while Sony and Universal last week alleged that Suno's latest model still infringes copyright. A Munich court ruled against Suno in July in a case brought by GEMA. The arrangements differ: Udio uses a walled garden (closed platform with limited outside distribution), Spotify is planning a paid Premium add-on without a launch date, and Suno permits downloads and outside releases subject to caps and watermarks, with distribution available through Believe and TuneCore. Rights remain complicated because songs generally involve separate copyrights in the composition and sound recording. Musicians and advocates argue labels may not control all relevant rights, including performers' identities and publicity rights, and fear the technology could weaken the labor market. With commercial terms still private, the key tests are whether litigation results in further settlements or victories and what artists are ultimately paid.