Spotify and Universal Music Group (UMG) signed licensing deals for AI-generated covers and remixes.
Premium users will access the tool through a paid add-on. The feature provides a new revenue stream for artists and songwriters beyond standard royalties.
Spotify shares surged approximately 16% following the announcement.
The partnership marks Spotify’s first entry into user-generated AI content. This move positions the platform to compete with AI startups Suno and Udio.
The model prioritizes artist consent, credit, and compensation. Partners have not disclosed financial terms or specific launch dates.