OpenAI plans to use AI to "create music," intensifying competition with Google and startups.

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After launching the text-to-video model Sora to great acclaim, OpenAI is now turning its attention to a new creative field: artificial intelligence music generation.

According to a report by tech media outlet The Information on the 24th, OpenAI’s internal teams have begun efforts to develop music generation AI. Another informed source stated that the company is working with some students from the Juilliard School to annotate musical scores—work that provides essential training data for developing music generation AI.

These developments indicate that OpenAI is accelerating its product expansion in hopes of extending the daily usage time of its over 800 million users and exploring new sources of revenue growth. This move will put OpenAI in direct competition with Google, which has already launched similar products, as well as up-and-coming startups Suno and Udio in the AI music field, with copyright issues remaining a key challenge that all participants must face.

Currently, it is unclear when OpenAI’s music generation initiative will launch, or whether it will be released as a standalone application or integrated into ChatGPT or Sora. An OpenAI spokesperson declined to comment.

Expanding the Product Line to Compete with Google and Emerging Unicorns

OpenAI’s entry into the field will directly intensify competition in AI music generation. One of its main rivals is tech giant Google. Google launched its second-generation music production model Lyria this May, offering the service through Google Cloud and promoting its capabilities for creating ad soundtracks to marketers.

Meanwhile, OpenAI will also face challenges from rapidly growing professional AI music startups like Suno and Udio. In just three years, Suno has reached about $150 million in annual recurring revenue by selling AI music generator subscriptions to users, nearly quadrupling compared to a year ago. Launching an AI music model capable of generating vocal or instrumental tracks would allow OpenAI to surpass the limitations of the current ChatGPT, which can only generate lyrics, chords, and other text content.

OpenAI’s latest move continues its strategy to go beyond its core chatbot service and build a more diversified product ecosystem. Following the huge success of ChatGPT, the company has actively explored new application scenarios to consolidate its market leadership and create new commercial value.

This move follows the launch of its video app Sora. Sora allows users to generate TikTok-style AI short videos. According to its head, Bill Peebles, on social platform X, the app reached one million downloads within less than five days of its launch—an even faster growth rate than ChatGPT’s debut at the end of 2022. In addition, OpenAI is developing a social-media-like feed within its chatbot, potentially providing a channel for users to share the AI music they create. The integration of these social features aims to further boost user engagement.

Potential Applications and Business Models

OpenAI’s exploration of music generation AI demonstrates its vast commercial imagination. According to a report citing a third party involved in related discussions, the company has internally discussed possibilities such as generating music via text and audio prompts—for example, having AI add a guitar accompaniment to an existing vocal track.

Products like these can help ordinary users easily create soundtracks for video content, and also provide efficient creative tools for business clients such as advertisers. For example, ad agencies could use OpenAI’s tools to brainstorm lyrics, create compelling ad songs based on musical samples, or even upload videos to mimic their style for creative production. This could pave the way for OpenAI to expand into the advertising business in the future.

However, to enter the AI music field, OpenAI may first need to reach agreements with major record companies to avoid potential copyright lawsuits. This is a significant obstacle facing all AI music generators.

The Recording Industry Association of America (RIAA), representing Universal Music Group, Sony, and Warner Bros., has already filed lawsuits against Suno and Udio, accusing these startups of using copyrighted songs to train their AI models without authorization or proper compensation, and seeking up to $150,000 in damages per infringing song. In response, both Suno and Udio have stated that they can use copyrighted materials under the “fair use” principle in copyright law.

Media reports earlier this month stated that Universal Music and Warner Music have been negotiating AI licensing agreements with these startups and Google. To mitigate risk, OpenAI has already taken preventive measures in its existing products—for example, ChatGPT will not share complete lyrics of certain songs. After Sora’s launch, CEO Sam Altman also stated that rights holders would be given “more granular control over character generation” and would share in some of the video generation revenue.

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