Universal Music Group and AI song generation platform Udio have settled a copyright infringement lawsuit and agreed to team up on a new music creation and streaming platform, the two companies said in a joint announcement.

Universal and Udio said Wednesday that they reached a "compensatory legal settlement" as well as new licensing agreements for recorded music and publishing that will "provide further revenue opportunities" for the record label's artists and songwriters. Advertisement

As part of the deal, Udio immediately stopped allowing people to download songs they've created, which sparked a backlash and apparent exodus among paying users.

The deal is the first since Universal, along with Sony Music Entertainment and Warner Records, sued Udio and another AI song generator, Suno, l

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