Video sharing giant, YouTube subsidiary of Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) is reportedly in discussions with top record labels to license songs for training artificial intelligence music tools. The proposed deal aims to clone the music of popular artists using AI.

What Happened: YouTube is attempting to secure the music industry's support by offering upfront payments. The platform requires the labels' content to legally train AI song generators in preparation for the launch of new tools this year, the Financial Times reported on Thursday, citing people familiar with the matter.

Major labels such as Sony, Warner, and Universal have reportedly been offered lump sums to persuade more artists to permit their music for AI software training.

However, many artists are resistant to AI music generation, fearing it could undermine their work. "The industry is wrestling with this. Technically the companies have the copyrights, but we have to think through how to play it," an executive at a large music company stated.

YouTube aims to enlist "dozens" of artists for its upcoming AI song generator launch this year, according to the report.

The video platform clarified, stating, "We're not looking to expand Dream Track but are in conversations with labels about other experiments."

Earlier this week, the Recording Industry Association of America, or RIAA, representing major record labels like Universal Music Group, Sony Music Entertainment, and Warner Music Group, filed lawsuits against AI music generators Suno and Udio. The suits claim the companies used unlicensed works from top artists to train their AI technology.

Why It Matters: This initiative comes amid a backdrop where AI firms like OpenAI are forging significant licensing agreements with media organizations to enhance large language models, pivotal for AI products like ChatGPT. Insiders, according to the report suggest these agreements could amount to tens of millions of dollars for media companies.

Last year, YouTube tested an AI tool named "Dream Track" which allows users to create short music clips using a text prompt. The tool was designed to mimic the sound and lyrics of famous singers, but only ten artists agreed to participate in the test phase, according to the report.

This move aligns with YouTube's AI music principles unveiled in collaboration with Universal Music Group, emphasizing a shared vision to responsibly leverage AI's transformative capabilities in the music domain.

AI music generation is not a new concept. Microsoft Corp.'s Copilot, for instance, offers a Suno extension that enables users to generate AI songs with a single line of text.

Similarly, Spotify Technology SA launched a beta tool allowing users to create AI-personalized playlists based on text descriptions.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote