Why we invested in Music AI: transforming the audio landscape with AI

The integration of AI into music and audio is fueling extraordinary growth and innovation. The global AI in music market, valued at $3.9 billion in 2023, is projected to reach $38.7 billion by 2033, driven by AI’s expanding role in composition, production, and distribution. AI-powered recommendation engines already account for 80% of music streaming consumption on platforms like Spotify and Apple Music.

At the same time, the rise of AI-generated content has raised concerns about intellectual property and artist compensation. A 2023 report by the International Confederation of Societies of Authors and Composers (CISAC) estimates that AI-generated music could reduce artists’ income by 24% by 2028—amounting to a €22 billion loss over five years. Still, nearly 60% of independent musicians now use AI tools, underscoring AI’s powerful influence in reshaping the industry and democratizing music creation.

Music AI addresses the challenges of integrating advanced AI into audio workflows through a scalable, customizable platform that reduces the need for in-house expertise. Its flagship B2C product, Moises, separates songs into stems (vocals, drums, bass, etc.) for flexible editing. Meanwhile, Music AI, the company’s B2B solution, delivers modular features—such as audio separation, voice synthesis, and music generation—via APIs, SDKs, and user-friendly interfaces. This approach streamlines development, lowers costs, and speeds time-to-market for creators and businesses alike. Notably, Music AI’s commitment to on-device AI aligns with the future of embedded technology, allowing models to run directly on hardware for faster performance, better privacy, and reduced cloud dependency.

Music AI’s platform delivers flexibility and cost efficiency for a diverse user base—ranging from independent creators producing professional-grade audio to enterprises in gaming, streaming, and education delivering immersive, personalized soundscapes. With over 50 modular AI audio solutions, the company processes more than two million minutes of audio daily for a user base exceeding 50 million. Its proprietary models, third-party integrations, and on-device AI capabilities ensure reliability, security, and scalability across smartphones, smart TVs, and other connected devices—all while elevating the end-user experience with cutting-edge features.

Co-founders Geraldo Ramos (CEO) and Eddie Hsu (COO) began their journey with the Moises app, now serving over 45 million users. Under their leadership, Music AI has grown to a 90-person team across eight countries, backed by leading investors in the U.S. and Brazil. Their blend of technical expertise and deep industry insight positions them to lead this transformation.

As the music industry evolves, Music AI stands out as a key enabler of innovation. Its adaptable platform empowers organizations to harness AI responsibly while preserving the human element of creativity. By investing in Music AI, we support a company advancing the possibilities of audio and on-device technology—and shaping the future of music in a sustainable, forward-thinking way.

Carlos Castellanos is an investor at Samsung Next. Samsung Next’s investment strategy is limited to its own views and does not reflect the vision or strategy of any other Samsung business unit, including, but not limited to, Samsung Electronics.

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