Online music production marketplace BeatStars has acquired “ethical” generative AI music platform Lemonaide AI.
Billed as setting “a new global standard for how artificial intelligence and music creators coexist”, the deal will see the Lemonaide team fully join BeatStars as they strive to build “the world’s first ethical, creator-owned AI music ecosystem”.
Founders Michael “MJ” Jacob and Anirudh Mani will lead technology and innovation across the company, “guiding the integration and development of ethical AI tooling directly into BeatStars’ platform and rights infrastructure”.
The firms previously struck a strategic alliance in 2023 as they sought “to establish a precedent for ethical AI business models in the music industry”.
The acquisition arrives as BeatStars, which counts over 10 million users, reports that it has paid out more than $450 million to creators worldwide.
According to a press release, the companies’ goal is to give creators “the ability to accelerate workflows, expand creative output, and collaborate globally, while preserving authorship, ownership, and long-term value”.
“With BeatStars, we have the opportunity to push the frontier of AI in an ethical way,” said Mani. “Our rights-first approach to generative AI proves innovation and ownership can move forward together.”
“This is not about replacing human creativity. It is about amplifying it in a way that respects the people who built this culture in the first place.”
MICHAEL JACOB, LEMONAIDE AI
Lemonaide AI says it has developed the first generative AI music models “built ethically in the likeness of specific producers, with explicit consent, transparent attribution, and compensation baked into the system itself”.
For the past three years, it has collaborated with BeatStars to develop and deploy models including AI tools created for multi-platinum producers such as Lex Luger, Kato On The Track, DJ Pain 1, Mantra, and KXVI.
“This is not about replacing human creativity,” added Jacob. “It is about amplifying it in a way that respects the people who built this culture in the first place.”
Launched in 2008 by Ibrahim “Abe” Batshon, BeatStars has grown into a global platform where producers, artists, songwriters, and musicians collaborate, license music, and build independent businesses.
In 2020, BeatStars expanded further into music publishing and rights administration through BeatStars Publishing and its Creator Rights Agency.
“AI is advancing faster than any technology the music industry has ever faced,” said Batshon. “And without decisive action, there is a real risk that creators will be erased from the value chain entirely by systems trained on their work without permission, attribution, or compensation.”
As MBW previously reported, BeatStars has been the source of samples for hits like Old Town Road by Lil Nas X, and Whoopty by CJ.
The company’s Chief Operating Officer Sean Gorman added that the Lemonaide deal “allows us to move ethical AI from principle to product”.
“Our disruptive plan is that creators who train the models continue to get ownership in the outputs,” he said.Music Business Worldwide
