What Udio does

Udio is an AI music generation platform launched in 2024 and headquartered in New York that produces complete songs — including vocals, instrumentals, and multi-genre arrangements — directly from natural-language text prompts. The underlying technology is a proprietary generative audio model, complemented by granular inpainting-style editing that lets users refine specific sections of generated tracks. The platform accepts text input and emits full audio output, making it a multimodal text-to-audio system rather than a wrapper around a third-party foundation model. Training is conducted on catalogs that have been progressively licensed through settlements with Universal Music Group (October 2025), Warner Music Group (November 2025), Merlin (January 2026), Kobalt (April 2026), and an industry-wide NMPA agreement (June 2026); Sony Music litigation remains ongoing.

Udio operates a hybrid go-to-market combining product-led consumer acquisition with enterprise rights licensing. Consumers access the platform through a self-serve web app with a freemium tier and paid subscriptions priced at $10 and $30 per month, the latter unlocking commercial licensing rights. The company reports a user base exceeding 100 million and daily song-generation volume of approximately 7 million tracks. Primary customer segments include individual music hobbyists, content creators needing background music for video and social, professional musicians using the tool for ideation and prototyping, and — on the enterprise side — major record labels and publishers licensing their catalogs for AI training and co-developing subscription-based AI music services. Approximately $70 million in total seed and Series A funding was led by Andreessen Horowitz with participation from will.i.am at a reported $400 million post-money valuation.

The strategic narrative since launch has been a transformation from defendant to licensed operator. After RIAA-led copyright suits filed in June 2024 on behalf of UMG, Sony Music, and WMG, Udio systematically settled with each major rights holder, converted adversarial relationships into licensing partnerships, and positioned itself as the vocal-focused AI music platform with the cleanest rights posture in its category. Residual risks include the unresolved Sony Music litigation (which is pursuing public disclosure of training-data scale), a class action under Illinois' Biometric Information Privacy Act, an AFM suit against UMG/WMG alleging non-sharing of AI settlement revenue, and independent-artist suits that Udio is actively moving to dismiss. The company is led by CEO Andrew Sanchez per industry reporting, with David Ding identified as co-founder and chief executive officer on the company's own website.

Name

Udio

Legal name

Udio AI, Inc.

Website

https://udio.com

Company type

Private

Founded year

2024

Operating status

Operating

Headcount range

1–10 employees

Short description

Udio is an AI music generation platform creating full songs with vocals and instrumentals from text prompts using proprietary generative models. Founded in 2024 and headquartered in New York, it serves 100M+ users and major music labels via freemium subscriptions ($10–$30/month) and enterprise licensing.

Ownership category

akta.pro rank

Product category

AI Music Generation Software

NAICS

Other Sound Recording Industries (512290), Sound Recording Industries (5122)

SIC

Services-Prepackaged Software (7372)

akta.pro primary industry

AI Music Creation & Assistive Tools (Generation, Separation, Mastering) (MPAIAIAG)

Keywords

• AI music generation
• Text-to-music platform
• Generative audio AI
• AI music creation
• Music licensing platform

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Software

Cost components

Technology or R&D, Personnel, Operations, Infrastructure, Marketing or Sales

Revenue model

1. Subscription Plans: Freemium model with free tier and paid plans at $10/month and $30/month, offering higher quality outputs, longer tracks, and commercial licensing on paid tiers
2. Commercial Licensing: Paid subscribers receive commercial licensing rights to use generated music in their projects, monetizing the B2C and B2B licensing model
3. Enterprise Licensing Deals: Licensing agreements with major labels and publishers (UMG, WMG, Merlin, Kobalt, NMPA member publishers) for AI training rights, creating revenue streams from catalog licensing

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels3 records

Core offering

Udio operates an AI-powered generative music platform that creates complete songs with vocals and instrumentals from text prompts. The platform serves individual creators and content producers via a freemium web subscription (free, $10/month, $30/month), and separately licenses its technology to major record labels and publishers (UMG, WMG, Merlin, Kobalt, NMPA) for compliant AI music creation services built on licensed catalogs.

Product overview

Udio is a standalone AI music generation platform that creates complete songs from text descriptions. The platform operates as a single unified product with tiered subscription plans (free and paid at $10/$30 per month) offering varying levels of commercial licensing rights. Users input text prompts describing desired music style, genre, mood, or lyrics, and the AI generates full audio compositions. The product has undergone licensing transitions following copyright litigation, settling with major labels to establish licensed generative music creation capabilities.

Differentiator

Problem solved

Functional benefit

Products and services

• Udio AI Music Generator AI-powered web platform that generates full songs with vocals and instrumentals from text prompts. Available via free tier and paid subscription plans ($10/month and $30/month). Paid plans unlock higher-quality outputs, longer tracks, and commercial licensing rights for use in videos, social media, podcasts, games, and other content.

Quantifiable outcome

• Platform generates millions of songs daily from over 100 million users

Named customers3 records

Segments4 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability3 records

Feature2 records

Partnerships

One partnership is on record.

• KLAY (Klay Media)minorStrategic or Co-development Partner · 10 June 2026NMPA announced an agreement in principle with KLAY alongside the Udio deal, marking another industry-wide licensing pact. KLAY's deal is notable for being secured prior to platform launch and represents a second major AI music platform entering licensed agreements with publishers.

Scale indicators5 records

Recent moves6 records

Expansion highlights6 records

Emerging players

• AIVA: AIVA is an AI music composition assistant focused on soundtrack and emotional/genre-specific music creation. It serves creators and game/media developers with similar prompt-based music generation capabilities as Udio.
• Stability AI: Stability AI entered into a WMG licensing deal as part of the same settlement wave that included Udio and Suno. It offers generative audio capabilities that overlap with Udio's consumer music creation use cases.
• KLAY (Klay Media): KLAY is an AI music platform that signed an in-principle industry-wide licensing deal with the NMPA alongside Udio in June 2026. It operates in the same licensed AI music creation space and is positioned as a peer emerging player.
• Musicfy: Musicfy is an AI music platform offering text-to-music and AI voice cover generation. It overlaps with Udio on creator-facing generative music features, particularly in vocal synthesis and remixing.

Direct peers

• Suno: Suno is Udio's primary direct competitor in AI music generation from text prompts. Both companies launched in 2024, faced RIAA-led copyright lawsuits, and have subsequently settled with major labels (UMG, WMG) on similar licensing terms.
• Loudly: Loudly is an AI music generation platform aimed at content creators, offering prompt-based music generation with commercial licensing. It competes with Udio for the same creator, YouTuber, and social-media video use cases.
• Boomy: Boomy is an AI music generation platform that lets users create and distribute original songs. It targets the same hobbyist and content-creator segments as Udio, with similar freemium subscription pricing and commercial licensing on paid tiers.

Broad incumbents

• Epidemic Sound: Epidemic Sound is a licensed music library serving content creators and brands with royalty-free music. It addresses the same customer pain point (costly music licensing for creators) but via a curated catalog model rather than generative AI.
• Adobe (Firefly / Audition): Adobe offers audio production tools (Audition) and the Firefly generative AI family. As a broad incumbent in creator software, Adobe represents both a potential partner and competitor in bringing AI music generation to professional creative workflows.
• Google DeepMind (Lyria): Google's Lyria model powers AI music generation in YouTube's Dream Track and other Google products. It is named alongside Udio and Suno in a BIPA class action and represents a deep-pocketed incumbent entering the same generative music category.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xtwitter.com/udio
• LinkedInlinkedin.com/company/udiomusic

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds1 record

Investors3 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Udio