AI-Focused Content-Attribution Startup ProRata.ai Scores Reported $25 Million Series A, Inks Universal Music Partnership Deal

Photo Credit: Luke Harold

Amid intensifying industry legal battles with Suno, Udio, Anthropic, and other generative AI players, Universal Music Group has inked an agreement with content-attribution startup ProRata.ai.Founded by Idealab Studio’s Bill Gross, who’s set to serve as CEO, ProRata.ai formally launched today. According to Axios, the software developer, which says it enables AI platforms to “fractionally attribute and compensate content owners,” has scored a $25 million Series A.

Behind that sizable backing, Pasadena-based ProRata itself confirmed support from Mayfield Fund, Revolution Ventures (a Sound Credit investor), Prime Movers Lab, and the mentioned Idealab Studio.

Also in place for ProRata are pacts not only with Universal Music, but the Financial Times, the Atlantic, Fortune, and more, according to the release that was forwarded to DMN.

As summarized by the debuting business, which says it has multiple patents pending, the technology at hand “analyzes AI output, measures the value of contributing content and calculates proportional compensation” for rightsholders.

Furthermore, ProRata by its own description “uses a proprietary algorithmic approach to score and determine attribution,” with compensation then doled out to rightsholders on a per-use basis. Bearing in mind the aforesaid tie-ups with media outlets, the focus appears to be on text-based chatbot outputs for the time being; ProRata has teed up “a consumer AI answer engine,” designed to showcase its attribution capabilities, for release this fall.

Universal Music’s own focus is, of course, on the music side. And in a statement, CEO Lucian Grainge indicated that his company will “help shape” ProRata’s efforts in the industry.

“We are encouraged to see new entrepreneurial innovation set into motion in the Generative AI space guided by objectives that align with our own vision of how this revolutionary technology can be used ethically and positively while rewarding human creativity,” communicated Grainge.

“Having reached a strategic agreement to help shape their efforts in the music category, we look forward to exploring all the potential ways UMG can work with ProRata to further advance our common goals and values,” concluded the 64-year-old.Time will reveal exactly which collaborations the partnership drives – an important point in light of the initially highlighted infringement battles with AI platforms and the similar disputes that are undoubtedly forthcoming.

Closer to the present, however, ProRata says it’s “in advanced discussions with global news publishers, media and entertainment companies, and more than 100 noted authors.” In light of the many authors who are spearheading separate litigation against AI platforms over alleged copyright infringement, those talks could prove significant.