As more deals are signed between GenAI companies and music rightsholders, we’d expect to see a new flurry of funding rounds unlocked for startups who are forging partnerships.

One of the first examples in 2026 is a $4.5m round for Musical AI, which has been building ‘attribution’ technology to get rightsholders and musicians paid when their work contributes to AI-generated tracks.

The round was led by investment firm Heavybit, which itself raised more than $180m last July for its funds aimed at early-stage software companies. BDC and Build Ventures also contributed to Musical AI’s new round.

“We are demonstrating that we can provide attribution and licensing infrastructure to everyone interested in generative AI. And we can not only license IP but also pay all involved rightsholders accurately and consistently,” said CEO Sean Power.