Kobalt Signs AI Remix Licensing Deal With Spotify, Joining Universal and Merlin

Kobalt has signed a licensing agreement with Spotify covering fan-made AI covers and remixes, the music publisher announced on Thursday, August 13.

The deal covers an upcoming Spotify tool that lets subscribers create covers and remixes of songs by participating Kobalt songwriters. Those songwriters will share in the revenue generated from the AI-created versions, according to Billboard.

Spotify's AI remixing tool will be available as a paid add-on for premium subscribers once it launches. Spotify first announced the feature during its Investor Day presentation in May, as part of a broader push into AI-powered creative tools.

Kobalt is the third rightsholder to sign on. Spotify reached a licensing deal with Universal Music Group on May 21, described at the time as allowing listeners to use AI to create content on the streaming platform for the first time, per The Guardian. A follow-on agreement with Merlin — a digital rights agency that negotiates on behalf of independent labels — was announced on August 4, according to Spotify's newsroom.

Further back, in October 2025, Spotify announced a partnership with five music companies — Universal, Sony Music, Warner Music Group, Believe, and Merlin — on what it called "artist-first" AI music tools. The individual licensing agreements signed since then spell out the terms under which each rightsholder's catalogue can be used.

Charlie Hellman, Spotify's senior vice president and global head of music, said the Kobalt agreement is grounded in three principles: consent, credit, and compensation for participating songwriters. Kobalt CEO Laurent Hubert framed the deal similarly, saying Spotify's AI tools are built on "ethical training, fair compensation, and intentional guardrails."

For songwriters, the appeal is straightforward. AI remixing raises a question the music industry has wrestled with since generative tools arrived: if a machine transforms a song, who gets paid? These licensing deals are an attempt to answer that before the tool reaches consumers, not after.

For Spotify, the tool is part of a spending cycle that is drawing scrutiny. On August 4, the same day it announced the Merlin deal, Spotify forecast third-quarter 2026 profit below analyst estimates, citing in part higher spending on marketing and AI features, Reuters reported. The company expects 788 million monthly active users for the quarter.

No launch date for the remixing tool has been announced. With Kobalt now on board alongside Universal and Merlin, Spotify has secured licensing from two of the three major labels (through Universal), a large independent-label collective (through Merlin), and one of the largest independent music publishers. Sony Music and Warner Music Group were named in Spotify's October partnership announcement but have not yet announced individual licensing deals for the tool.