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

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.

The rise of AI song generation tools like Udio has disrupted the $20 billion music streaming industry. Record labels accuse the platforms of exploiting the recorded works of artists without compensating them.

The deal is the first since Universal, along with Sony Music Entertainment and Warner Records, sue

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