Universal Music Group and ElevenLabs Strike Global AI Music
Universal Music Group has signed a multi-year licensing agreement with AI audio firm ElevenLabs to co-develop new fan and artist platforms.
Universal Music Group (UMG) has entered a multi-year global licensing agreement with AI audio company ElevenLabs. The two firms will jointly develop a new AI-powered music platform for fans and create AI audio products for artists and songwriters.
This is ElevenLabs' first agreement with a major music company. The AI firm was valued at $11 billion in a $500 million Series D funding round announced in February. That valuation is more than double the $5.4 billion valuation reached by rival AI music company Suno in June.
The UMG x ElevenLabs Platform
The UMG x ElevenLabs platform is currently in development. According to a press release, it will give fans new ways to co-create with music from participating artists and songwriters. This will cover remixes, mashups, new track interpretations, and personalized vocal experiences. The agreement also includes plans for further products and fan experiences in the coming months and years.
Sir Lucian Grainge, Chairman and CEO of Universal Music Group, commented on the partnership. "The most exciting possibilities for AI and music are those that put artists, songwriters, and fans at the center," he said. "ElevenLabs' leadership in AI audio brings a new dimension to our growing ecosystem of partners committed to expanding what's creatively and commercially possible for human artistry."
Mati Staniszewski, Co-Founder and CEO of ElevenLabs, also shared his perspective. "AI opens up incredible possibilities for interacting with our favorite music and artists," he stated. "By combining UMG's global community and rights management expertise, with our AI models and products, we'll enable artists and songwriters to create powerful new experiences for their fans, and ensure they are fairly compensated."
ElevenLabs' Existing Music Business
The new UMG-affiliated platform will operate separately from ElevenLabs' existing music products. Those products are its Music API, which supplies music models to businesses and developers, and ElevenMusic, its app for generating and editing original songs.
ElevenLabs launched the ElevenMusic app in August 2025 alongside licensing agreements with Merlin and publisher Kobalt. It has since added a deal with Believe. In April, the company said more than 4,000 independent and emerging artists were using the platform.
Company Context and Comparisons
ElevenLabs' Series D funding round was led by Sequoia Capital, with Andreessen Horowitz and ICONIQ increasing their existing stakes. The company's other backers include NVIDIA. ElevenLabs said in May that it had crossed $500 million in annual recurring revenue, up from $350 million at the end of 2025. Forbes estimates the company made $116 million in profits in 2025 and puts its headcount at 450.
The following table compares key figures for ElevenLabs and its competitor Suno:
| Company | Valuation | Recent Funding Round | Valuation Date |
|---|---|---|---|
| ElevenLabs | $11 billion | $500 million Series D | February 2025 |
| Suno | $5.4 billion | $400 million Series D | June 2025 |
For UMG, the ElevenLabs deal continues a series of AI agreements. This run began with the settlement of its lawsuit against Udio in October 2025. Most recently, Universal joined Sony Music Group and Warner Music Group in investing in Stability AI.
The UMG agreement was announced a day after Suno launched its v6 suite of models. Suno says it developed those models with Warner Music Group, BMG, and Believe. Suno Chief Product Officer Jack Brody has confirmed that the data used to train those models does not include recordings from UMG or Sony Music Entertainment. Both UMG and Sony remain plaintiffs in the RIAA-coordinated copyright case against Suno filed in Boston in June 2024.
Voice Licensing and Legal Challenges
ElevenLabs has also pursued voice licensing agreements with named talent on a consent-based model. In November 2025, the company said investor Matthew McConaughey was using its technology to produce a Spanish-language audio edition of his newsletter in his own voice. Actor Michael Caine licensed his voice to ElevenLabs' Iconic Marketplace at the same time, joining more than 25 other figures.
Staniszewski called that AI voice marketplace a breakthrough for ethical sourcing and licensing of celebrity content at its launch. The company has also faced legal challenges regarding voice use. It settled a suit in Delaware federal court in November 2025 brought by voice actors Karissa Vacker and Mark Boyett. A separate class action filed in Illinois federal court on May 11 by a group of journalists and voice workers remains active. It alleges ElevenLabs extracted biometric voiceprints from recordings without notice or consent.
Founded in 2022 by Mati Staniszewski and CTO Piotr Dąbkowski, ElevenLabs is headquartered in London and New York. Staniszewski said in February that the company was building toward an initial public offering.
