Core Insights - The world's largest music companies have licensed their works to Klay, a music startup developing an AI-driven streaming service that allows users to remake songs [1][2] - Klay is the first music AI service to secure agreements with all three major record labels: Universal Music Group, Sony Music, and Warner Music Group [2] - Klay's platform will combine streaming service features with AI technology, enabling users to recreate songs in various styles [3] Company Positioning - Klay positions itself as an ally to the music industry, ensuring that artists and labels maintain control over the usage of their works [4] - The leadership team includes music producer Ary Attie and former executives from Sony Music and Google's DeepMind [4] Industry Context - The music industry is currently navigating challenges with AI companies, having previously filed lawsuits against firms like Suno Inc. and Udio for copyright infringement [5] - Major music services, including Spotify and YouTube, are also developing AI tools, indicating a broader industry trend towards embracing AI technology while managing copyright concerns [6] Recent Developments - The record industry is actively engaging in deal-making related to AI, with Universal Music and Warner Music settling lawsuits against Udio and licensing their works for upcoming products [7] - Stability AI has also entered into agreements with major labels, while Suno, valued at $2.4 billion, remains without a deal with any major label [7]