YouTube is negotiating with major record labels for licenses to use their music in AI song-generation tools. It is offering substantial upfront payments but facing resistance from artists worried about devaluing their work. The platform, which trialed a generative AI tool called "Dream Track," aims to expand its AI music capabilities, potentially integrating them into YouTube Shorts. Meanwhile, the music industry is pushing back against unlicensed AI usage, with leading companies suing AI startups Suno and Udio for copyright infringement.