Hey everyone, it’s Matt from AIDIY, the AI music guy. I’ve always said that Music Is For Everyone, but as of today, we are officially in a battle over who actually gets to keep the music they create.
We’ve got some massive news. If you’ve been following the industry, you know we’ve been in a state of "Fair Use" limbo for nearly two years while the major record labels, Sony, Universal, and Warner, sued the giants of the space, Suno and Udio. But within the last 24 hours, the game changed completely. Suno has officially walked away from settlement negotiations. They’ve effectively looked at the major labels and said, "Screw you. We're not doing it".
The "Walled Garden" vs. The Wild West
To understand why this is such a huge escalation, you have to look at what happened to Udio. They were the first to blink. When Udio settled with Universal Music Group, they agreed to a "Walled Garden" approach. Almost overnight, users were given a tiny window to download their old tracks before the walls went up.
Now, on Udio, you might be able to make great songs, but you can’t really use them in a meaningful way. You can show them to your friends at a barbecue on your computer, but you can’t take them outside that ecosystem commercially. It’s a closed-door experience, stuffy, isolated, and disconnected from the world.
Suno’s Power Play: "Let's Do This"
For a long time, Suno held their cards close to their chest. But Suno is in a different position than Udio. With a $3 billion valuation and $300 million in recurring revenue, they have the "chips" to stay in the game. They have the lawyers and the backing to defend themselves rather than being bled dry by litigation.
In this latest breakdown, Suno basically said they aren't taking the "no download" deal. They aren't going to treat their users like they’re in a corporate cage. Suno’s Chief Music Officer, Paul Sinclair, recently laid out exactly why they are refusing to budge:
"If we had tried to lock music into closed systems over the last 25 years, we wouldn't have streaming as we know it... We wouldn't have the explosion of global genres, bedroom producers creating Hot 100 hits, or fans becoming creators in their own right."
While Universal’s Michael Nash claims this leads to "direct cannibalisation" of human artists, Suno is fighting for AI to be a professional instrument you actually control an open-air experience where you can breathe, create, and share with the world.
Is Udio a "Walking Ghost"?
In my opinion, this line in the sand effectively kills Udio. Why would any creator spend their time and "intention" in a dark, cramped cage where you are essentially working in a vacuum, when Suno is fighting to keep the "Wild West" freedoms alive? Suno offers the sunlight, the social connection, and the expansive horizon of a real creative tool. Unless the labels successfully sue Suno into oblivion, Udio is looking like a "Dead Man Walking".
My Advice: Keep Backing Up
Even though Suno is standing firm today, things can change in an instant. My suggestion remains the same: Download your songs now. We don't know if downloads will eventually be moved behind a higher paywall or if the legal pressure will eventually force a change. Don't leave your creativity to chance.
A Bigger Vision: Giving Back
While we talk about the future of tech, I’m also focused on the future of people. This October, I’m heading to Indonesia to support the John Fawcett Foundation. We go out into the villages to see life-changing eye surgeries that give people back their sight. It’s a small donation that makes a massive impact. If you want to see how we can actually change lives, stay tuned for more details on that trip.
What’s your take? Is Suno right to walk away, or is the "Walled Garden" inevitable? Let me know in the comments.
Music is for everyone. I run the AiDIY lives, the Featured Five and this little corner of the internet where AI music creators hang out.