A New Chapter: When the “Big Three” Go All-In on AI

The music industry is set to experience another seismic moment. In November 2025, the three biggest record-label conglomerates, Sony, UMG, and Warner, signed independent licensing deals with KLAY Vision, an AI-driven streaming startup.

Until now, the dynamic between major record labels and AI music platforms has been of a hostile nature, with the labels viewing AI music generation tools as copyright-infringing threats. However, in the case of KLAY, all three have come to terms to license their massive catalogs, paving the way for a licensed music experience using AI technology.

Meanwhile, KLAY proudly calls itself “a new subscription product that will uplift great artists and celebrate their craft” rather than a “prompt-based meme generation engine,” given its utilization of a “Large Music Model” trained on music alone.

In short: the majors aren’t just accepting AI – they’re actually embracing it. And by doing so together, they’ve effectively given the green light to what may be the first industry-sanctioned large-scale AI music platform.

Why This Is Big (Probably Bigger Than We Realized)

1. Building a Massive Market Share for AI

Industry sources put the overall share of the market for recorded music that is held by the “Big Three” at three quarters. Having all three on board, KLAY will automatically gain access to a commanding, perhaps even overwhelming, part of the mainstream catalogues. This will make it infinitely more attractive to mainstream listeners than any AI system based on unlicensed or independent catalogues.
This is no small indie project – it’s a move to change the way music is consumed and experienced on a massive scale.

2. A Controlled, Licensed Alternative to the “AI Wild West”

The past few years have witnessed the rise of AI music tools that used or scraped copyrighted songs, leading to lawsuits against them. KLAY, on the other hand, is created from scratch, taking into account licensing, royalties, and rights, which can possibly provide a more ethical way of creating AI music or using AI in music.

This could radically redefine what the future of music AI looks like – providing a model for sound AI-music integration rather than “generation engines” that are ripe for infringement.

3. A Potential Game-Changer for Artists, Songwriters, and Fans
Under the agreement: Artists and writers retain control of their work with respect to KLAY. When fans remix or reimagine songs, the artists involved are (theoretically) credited and paid.

This could open a whole new world for listeners, who could begin to remix or re-style songs, or even customize them for themselves, rather than simply being able to stream music.

It’s not human artists being replaced, at least in the view of KLAY, but augmented by a new paradigm of “music + AI + fan participation.”

But: Should We Have Expected This? Maybe — But the Speed Is Surprising

Those who have been following the development of AI in music feel that licensed AI platforms are a possibility. There have been indications of AI firms trying to woo labels, and labels may be having a change of heart over their opposition to AI technology.

That said, the fact that all three of the major record labels signed on to the same startup, and did so at the same time, suggests that there is something more at play here than a general clash of interests between these companies and the development of AI: namely, that they recognize that AI is here to stay.

What This Means for the Future: What to Watch

Integration of AI-powered music consumption into mainstream culture: If KLAY is successful, consumers may expect more engaging and customizable music experiences than simply listening to a file. New revenue streams for artists and songwriters: Streaming royalties and AI-generated remixes could become a true part of the revenue stream, beyond just traditional streaming or touring. The pressure on independent labels and "unlicensed" AI tools: With the licensed standard established by KLAY, any models built on unlicensed content risk being left behind or potentially litigation-prone.

Innovation through creativity—or homogenization?

There is potential for creativity in remixing songs, but also danger if the same catalogs of music are used: could there be a homogenization of sound if the AI-generated songs are too similar? Will new artists come into play, or will major labels' catalogs prevail even in AI-generated music? Legal and ethical guardrails: KLAY’s licensed methodology might shape regulation and industry standards – perhaps even serve as a template for “ethical AI music.” Well, is it really “Unbelievable”? Perhaps. But here it is, and it is real. Only a few years ago, the notion of a fully licensed AI music streaming service supported by the largest labels in the world would have seemed unlikely, perhaps even laughable. But here we are, with all three majors on board. Reuters +2 Pitchfork +2 This doesn’t mean that the future is certain. It simply means that we are embarking on a new chapter, one where AI, rights holders, artists, and listeners will negotiate a new equation. What this new equation looks like will depend on how successfully KLAY (and others like it) negotiate issues of rights, creativity, and monetization — and ultimately, whether the public chooses to accept a new form of “active listening.” Whatever happens next, music just shifted, hard.