Major Labels Invest $76M in Stability AI
Universal, Sony, and Warner Music have taken equity in Stability AI through a $76 million funding round. Other news includes Beggars Group's 20% revenue growth, BMG's financial results, a Sony lawsuit against Kroger, and a legal development in the majors' case against Suno.
Universal Music Group, Sony Music Group, and Warner Music Group have all taken equity in Stability AI by joining a $76 million Series B funding round. The investment coalition also includes gaming giant Electronic Arts and investment firms AMD Ventures and Pacific Alliance Ventures.
This move follows existing strategic partnerships between Stability AI and both Universal and Warner. The deal represents a significant bet by the major labels on the generative AI sector.
Beggars Group Reports Strong Growth
Beggars Group's total annual revenue grew 20% year-over-year to £134.48 million, or $177 million, in 2025. The UK-based independent record company, founded and led by Martin Mills, filed these figures with Companies House on August 24.
The company owns or co-owns several prominent labels, including XL Recordings, 4AD, Rough Trade Records, Matador Records, and Young Recordings. In related news, XL Recordings, now majority-owned by Beggars, paid $23 million in dividends to its shareholders.
BMG's Performance and Merger Timeline
BMG reported its revenue grew 4.9% year-over-year to €444 million, or $518 million, in the first half of 2026. On an organic basis, which excludes acquisitions, disposals, and currency effects, revenue was up 8.1% year-over-year.
These interim figures were published by BMG and its parent company, Bertelsmann, on August 28. Bertelsmann also stated that BMG's planned merger with Concord is now expected to close in the third quarter of 2026.
Sony Music Sues Kroger Over Copyright
Sony Music Entertainment has sued The Kroger Co. over alleged copyright infringement. The complaint, filed on August 21 in the US District Court for the Central District of California, centers on the unlicensed use of Sony's sound recordings in social media advertising.
Sony Music claims it has identified at least 392 unauthorized uses of its recordings on Kroger's social media accounts and on the accounts of influencers paid to promote the grocery giant's brands.
Legal Development in Suno Case
A US federal judge has cleared Universal Music Group and Sony Music Entertainment to accuse AI music firm Suno of 'stream ripping' YouTube to train its models. Judge F. Dennis Saylor IV granted the labels leave to bring the claim under Section 1201(a) of the Digital Millennium Copyright Act in an order dated August 18.
The amended complaint, formally accusing Suno of circumventing YouTube's anti-downloading technology, was filed on August 25 in the US District Court for the District of Massachusetts.
