Spotify has struck a landmark licensing agreement with Universal Music Group that will allow Premium subscribers to create artificial intelligence-powered covers and remixes of songs directly within the platform, marking the first time the audio streaming giant has moved into user-generated artificial intelligence music creation. The deal allows subscribers to create artificial intelligence-generated covers and remixes of songs, marking the first time the streaming giant will allow users to produce artificial intelligence content using its platform, with shares of the company rising around 16 percent following the announcement, and the companies confirming that the new tool will create an additional source of income for artists and songwriters on top of what they already earn on Spotify through royalties.
Spotify described the new artificial intelligence-powered remix and fan-made cover creation tool as a paid add-on for Spotify Premium subscribers, and characterised it as the company’s most ambitious artificial intelligence play to date, noting that it already offers an artificial intelligence disc jockey feature and other personalisation tools, with the announcement arriving as part of Spotify’s Investor Day 2026 updates, which also included upcoming podcast features and a new concert ticketing tool. Universal Music Group Chief Executive Sir Lucian Grainge described the project as an artist-centric initiative built around responsible artificial intelligence, with the new Spotify artificial intelligence remix tool focused on officially licensed fan-made content rather than unofficial uploads that often face copyright problems across streaming platforms. Spotify Co-Chief Executive Alex Norström stated that what the company is building is grounded in consent, credit, and compensation for the artists and songwriters that take part.
Spotify has not said when the artificial intelligence music creation tools will become available, confirming only that the feature will arrive in the future as a paid add-on for Premium users, while the deal with Universal Music Group gives Spotify the rights framework it needs to build artificial intelligence cover and remix tools and allows artists and rightsholders to choose whether they want to participate. Music Business Worldwide reported that all Spotify users will be able to play the tracks created through the new artificial intelligence covers and remixes tool, even if creation itself is restricted to Premium subscribers. The announcement places Spotify in more direct competition with artificial intelligence music creation startups such as Udio and Suno, which have built platforms around generative music tools but without the licensed artist catalogues and industry relationships that Spotify brings to the space. Universal Music Group’s roster, which includes artists such as Taylor Swift, Ariana Grande, Drake, and Billie Eilish, gives the new feature immediate cultural relevance that standalone artificial intelligence music platforms have struggled to match. Alongside the music creation announcement, Spotify also announced a new feature called Reserved, which will set aside concert tickets for Premium subscribers that Spotify identifies as an artist’s most dedicated fans based on listening history, designed to give genuine fans a better chance of securing tickets without relying solely on speed during public sales.
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