Walled Gardens or Open Studios? Inside Music’s Growing AI Divide

A Defining Debate for AI Music

A high-profile debate is unfolding at the intersection of music and artificial intelligence, and it could determine how the next generation of songs is created, shared, and monetized. At the center of the dispute are Universal Music Group (UMG) and Suno, two powerful players with sharply different visions for licensed AI music platforms. Their disagreement isn’t just contractual—it’s philosophical, centering on whether AI music tools should operate as tightly controlled “walled gardens” or more permissive “open studios.”

Suno’s Case for Openness and Creative Freedom

The discussion gained momentum during Grammy Week 2026 in Los Angeles, when Paul Sinclair, Suno’s Chief Music Officer and a former Warner Music Group executive, published a LinkedIn memo titled “Open Studios, not walled gardens.” Sinclair argued that locking AI-generated music into closed systems risks undermining the very innovation that has driven music’s digital evolution. He pointed to streaming’s rise as evidence that openness can expand access, empower creators, and fuel global participation—outcomes he believes AI should amplify rather than restrict.

UMG’s Walled Garden Approach to Artist Protection

UMG, however, sees significant risks in that openness. Michael Nash, the company’s Executive Vice President and Chief Digital Officer, has emphasized that walled gardens are designed to protect artists from having their work repurposed into competing content across streaming and social platforms. This philosophy shaped UMG’s October 2025 settlement with Udio, which disabled downloads and limited how AI-generated music could circulate beyond its platform. Nash has described Suno’s model as risking “direct cannibalisation” and framed the issue as one of ethical responsibility rather than technical preference.

Why the Industry Is Split

The divide becomes clearer when comparing broader industry behavior. Warner Music Group, led by CEO Robert Kyncl, adopted walled-garden restrictions in its Udio settlement but later signed a more flexible deal with Suno. As Tim Ingham of Music Business Worldwide noted, strict controls may push innovation toward unregulated international competitors—a concern echoed by online users warning that foreign AI models could fill the gap.

While both sides agree that licensing AI is preferable to litigation, they remain deeply divided on how those licenses should function. Whether AI music evolves behind digital walls or within open creative ecosystems will shape artist compensation, copyright norms, and how millions of users interact with music. As AI tools mature, this unresolved tension may prove to be one of the most consequential decisions the music industry faces in the coming decade.