Express Delivery | AI Music Dark Horse Klay Raises $10M, Signs with Three Major Labels, Focuses on “Song Adaptation” Not “Song Generation”
Klay Gains Major Label Support — Challenges Suno and Udio
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_Image source: Klay_
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A Landmark Deal with Industry Giants
Klay, an AI music startup, has signed licensing and registration agreements with Universal Music Group, Warner Music Group, and Sony Music — becoming the first AI startup to partner with all three.
Founder Ary Attie (30) is positioning Klay as a “white knight” in AI music, deliberately delaying product launches to avoid the copyright lawsuits that hit rivals Suno and Udio.
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The Unique Pitch
Under these agreements:
- Training Data: Klay can use each label’s catalog to train its AI.
- Streaming App: Planned launch in months, featuring both classic and AI‑modified songs.
- Revenue Sharing: Labels earn based on how often customers stream or remix their tracks.
Example user experience:
- Keep Lyrics Intact: Modify audio effects only.
- Remix Requests:
- Turn an Olivia Rodrigo track into a fast, synth‑driven club mix.
- Add a 1970s groove to PinkPantheress’s album.
The result? An “infinite remix engine” — distinct from Suno and Udio’s focus on AI‑generated originals.
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Challenges Ahead
Klay faces formidable competition:
- Spotify’s dominance in streaming.
- OpenAI’s work on music generation tech.
- Resurgent rivals Suno and Udio, now moving toward settlements and partnerships with major labels.
Since 2021, Attie has raised about $10M from investors (FJ Labs, MIT’s E14 Fund) and hopes new funding will follow these label deals.
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Compliance as a Competitive Advantage
In a turbulent AI music industry, formal partnerships are crucial. For creators blending AI and music, platforms like AiToEarn enable:
- AI‑driven music creation.
- Cross‑platform publishing (Douyin, Bilibili, YouTube, X/Twitter, etc.).
- Analytics and model rankings via AiToEarn开源地址.
> This infrastructure supports sustainable revenue streams at scale.
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The Big Question
Will listeners prefer personalized remixes over simply streaming originals? Skeptics point out this remains untested — but similar doubts existed before Suno earned $200M annually, or AI‑adapted movies went viral.
Sony Music’s Dennis Kooker sees Klay’s service as “a new dimension of music interaction”, more engaging than current models.
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Ary Attie’s Journey
- Background: Classical piano in Buenos Aires; dual studies in music and computer science at Columbia University (2019).
- Networking & Research: Immersed in AI music research papers, collaborating with MIT programmers.
- Funding Milestones: Initial round in 2021, boosted post‑ChatGPT, entry into Amazon’s AI Startup Accelerator.
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Notable Team Members
- Brian Whitman: Co‑founder of The Echo Nest (acquired by Spotify), early recommendation algorithm pioneer.
- Björn Winckler: Former Google DeepMind, worked on Lyria.
- Thomas Hesse: Former Sony Music executive with deep industry negotiation experience.
Hesse’s insistence on full rights agreements before product launch shaped Klay’s compliance‑first strategy.
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Market Position
The team is riding AI hype but must release a live product to prove capabilities.
Attie’s Walker Hotel demos — using pre‑generated tracks — evoke parallels with Tesla’s tightly controlled tech showcases.
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Wider AI Creative Ecosystem
Platforms like AiToEarn官网 provide open‑source tools for:
- AI content generation.
- Cross‑platform publishing (Douyin, Kwai, WeChat, Bilibili, Xiaohongshu, Facebook, Instagram, LinkedIn, Threads, YouTube, Pinterest, X/Twitter).
- Analytics and AI模型排名.
These tools can help startups like Klay scale engagement and global distribution.
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Potential Impact
If Klay delivers on Attie’s vision:
- Everyday fans could experiment with DJ mixing and sampling at high tech precision.
- Integrated with Whitman’s recommendation engine, Klay could rival Spotify in music personalization.
- Niche targeting vs. mainstream remains a strategic question.
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Founders’ Outlook
Ary Attie: “I hope we can ease controversy around AI in the arts and move into a more constructive phase.”
Thomas Hesse: “I hope we achieve massive success simply because consumers love us.”
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References
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🚀 Recruitment
- Next intern batch now open.
- Seeking creative Gen Z entrepreneurs.
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About Z Potentials
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By structuring the narrative around strategic compliance, product innovation, and market readiness, Klay emerges as a bold contender in AI music — but one that must deliver real-world adoption to maintain momentum.
