You may not have heard of the music start-up Klay, but it has already secured deals with three major record labels to allow users to remake songs using artificial intelligence tools, according to Bloomberg News.

Klay, which is building a streaming service, has agreements with Universal Music Group, Sony Music and Warner Music Group. The platform will allow users to recreate songs in different styles using AI.

Last year, Klay was promoted as an “ethical AI music company” and positioned as “the backbone for a new era of innovation, powering new products and experiences, committed to the premise that AI can bolster and grow musical creativity and human artistry”.

Reports suggest the start-up is developing a “Large Music Model” called KLayMM, designed to help humans create new music with AI assistance.

According to Bloomberg, Klay aims to offer features similar to Spotify but with a focus on AI-driven song remakes. The company is led by music producer Ary Attie and employs former executives from Sony Music and Google’s DeepMind.

The music industry has been clashing with AI companies in recent years over the unauthorised use of copyrighted songs. Labels sued Suno and Udio for allegedly using their catalogues to train AI systems.

On Wednesday, Warner Music Group was reported to have settled its copyright infringement lawsuit against Udio — its second settlement with a major label in less than a month.

WMG did not disclose financial details, but, as with Udio’s recent agreement with Universal Music Group, the settlement may support the launch of a new Udio platform in 2026, featuring licensed music from WMG’s recorded and publishing catalogue.

Robert Kyncl, CEO of WMG, said: “We’re unwaveringly committed to protecting the rights of our artistes and songwriters, and Udio has taken meaningful steps to ensure that the music on its service will be authorised and licensed. This collaboration aligns with our broader efforts to responsibly unlock AI’s potential — fuelling new creative and commercial possibilities while continuing to deliver innovative experiences for fans.”

Recently, UMG launched Brenda Lee’s Rockin’ Around The Christmas Tree in Spanish for the first time using SoundLabs AI technology, approved by the artiste.