From the major labels’ $76M Stability AI bet to Universal and Sony’s Suno ‘stream ripping’ claim… it’s MBW’s Weekly Round-Up

This week, Universal Music Group, Sony Music Group, and Warner Music Group all took equity in Stability AI by joining a $76 million Series B funding round.

Meanwhile, Beggars Group reported 20% YoY revenue growth to $177 million in 2025, as XL Recordings — now majority-owned by Beggars — paid $23 million in dividends to its shareholders.

Elsewhere, BMG’s revenue grew 4.9% YoY to $518 million in H1 2026, with organic revenue up 8.1% YoY. Bertelsmann also said BMG’s planned merger with Concord is now expected to close in Q3.

Also this week, Sony Music sued grocery giant Kroger over at least 392 alleged unauthorized uses of its recordings in social media ads.

Plus: A US federal judge cleared UMG and Sony Music to accuse AI music firm Suno of ‘stream ripping’ YouTube to train its models.

Here are some of the biggest headlines from the past few days…

1. Universal, Sony, Warner join $76M funding round in Stability AI

The three major music companies have all just banked equity in Stability AI – by joining a USD $76 million Series B investment into the gen-AI company.

Universal Music Group, Sony Music Group, and Warner Music Group join a Series B investor coalition that also includes gaming giant Electronic Arts, plus investment firms AMD Ventures and Pacific Alliance Ventures.

Universal and Warner had previously signed strategic partnerships with Stability AI. (MBW)

2. Beggars Group revenue hit $177M in 2025, as XL Recordings paid out $23M dividend to shareholders

Beggars Group‘s total annual revenue grew 20% YoY to GBP £134.48 million (USD $177 million) in 2025.

The figure, which includes Beggars’ income from labels it part-owns, was revealed in a filing with the UK’s Companies House on Monday (August 24).

The UK-based indie record company, founded and led by Martin Mills, owns or co-owns XL Recordings, 4AD, Rough Trade Records, Matador Records, and Young Recordings. (MBW)

3. BMG’s organic revenue grew 8.1% YoY in H1 2026; Concord merger now due to close in Q3

BMG saw its revenue grow by 4.9% YoY to EUR €444 million (USD $518M) in the first half of 2026.

On an organic basis – which strips out the impact of acquisitions, disposals, and currency effects – BMG‘s revenue was up 8.1% YoY in the period.

That’s according to new interim figures from BMG and its parent, Bertelsmann, published today (August 28). (MBW)

4. Sony Music sues Ralphs parent Kroger over alleged copyright infringement in social media ads

Sony Music Entertainment has sued The Kroger Co. over the alleged unlicensed use of its sound recordings in social media advertising.

The complaint was filed on Friday (August 21) in the US District Court for the Central District of California.

Sony Music says it has identified at least 392 unauthorized uses of its recordings on Kroger‘s social media accounts and on the accounts of influencers paid to promote its brands. (MBW)

5. Judge clears UMG and Sony to accuse Suno of pirating YouTube via ‘stream ripping’ to train its AI

Universal Music Group and Sony Music Entertainment have formally added a claim to their copyright lawsuit against Suno accusing the AI music company of circumventing YouTube’s anti-downloading technology.

The amended complaint – which you can read here – was filed on Tuesday (August 25) in the US District Court for the District of Massachusetts.

It follows an August 18 order in which Judge F. Dennis Saylor IV granted the labels leave to bring the claim, under Section 1201(a) of the Digital Millennium Copyright Act. (MBW)