Spotify and Universal Music Group have struck a deal that, instead of dragging them into court, sits them at the same table. Premium users will be able to create AI-generated cover versions and remixes of songs by participating artists - and the artists will share in the revenue. It's the first public admission from the major labels that AI music is reality, and now needs to be monetised.

The feature will sell as a paid add-on for subscribers. As Spotify explains, the whole concept is based on "access, credit and compensation." Alex Norström, Spotify's co-CEO, says it in typical corporate language: "What we're building is based on consent, credit and compensation for the artists and songwriters who take part."

On the Universal side, Sir Lucian Grainge - chairman and CEO of UMG - says this allows artists to "deepen relationships with fans, while at the same time creating additional revenue." Translation: we're no longer pretending, while someone else feeds AI models with our catalogues.

Context matters. Spotify had previously signalled it wanted to work with all the majors - Universal, Sony, Warner, Merlin and Believe - to build AI tools based on consent, not on lawsuits. And the lawsuits were inevitable. Suno and Udio, the two AI-music pioneers, fought it out with the majors after they trained their models without a prior deal. Now the majors have a choice: sue them all one by one, or build their own terrain.

Spotify, clearly, is delivering them what they chose. The question now is whether independent artists will fall under the deal's terms, or whether this is just an arrangement between a few giants who will lock down the market before the smaller players can react.