Generative AI start-up Udio has formed a licensing agreement with Merlin, a popular digital licensing provider for thousands of independent labels and distributors. The announcement — which arrives a few months after Udio signed similar licenses with Universal Music Group and Warner Music Group — will now allow independent labels, distributors and artists to earn money by allowing their recordings to be used in AI training.
Source: Udio Strikes AI Licensing Deal With Merlin for Independent Labels








Heavybit, the self-described “leading early-stage investor in enterprise infrastructure,” led the newer raise. Also contributing to the $4.5 million tranche were the Business Development Bank of Canada and Halifax-based Build Ventures. Looking ahead to the remainder of 2026, Musical AI intends to keep on building out its core attribution tech. Per the company, the involved tools are “successfully deployed” and “can parse what percentage of a generated output came from which source.”