Sony Music Makes First AI Investment, Leading Vermillio’s $16M Series A Funding Round

Vermillio, an AI licensing and protection platform, raised $16 million in Series A funding led by Sony Music and DNS Capital, the company announced on Monday (March 3). This marks the first time Sony Music has invested in an AI music company.

Sony Music’s relationship with Vermillio dates back to 2023, when the two companies collaborated on a project for The Orb and David Gilmour. Through the partnership, fans could use Vermillio’s proprietary AI tech to create personalized remixes of the acts’ 2010 ambient album Metallic Spheres.

According to a press release, Vermillio plans to use the funds to scale operations and “continue building out solutions for a generative AI internet that enables talent, studios, record labels, and more to protect and monetize their content.”

Vermillio’s goal is to create an AI platform that securely licenses intellectual property (IP). One of its core products is TraceID, which provides protection and third-party attribution for artists. Through it, the company claims artists and rights holders can control their data and AI rights.

Apart from its collaboration with Sony Music for the AI remix project, Vermillio has also worked with top talent agency WME to shield its clients from IP theft and find opportunities to monetize their name, image and likeness rights by licensing their data. Sony Pictures also worked with Vermillio to create an AI engine that allowed fans to make their own unique digital avatars in the style of Spider-Verse animation. Each of the fan generations were then tracked using TraceID so that all works could be tied back to the filmmakers’ original IP.

“We are setting a new standard for AI licensing — one that proactively enables consent, credit, and compensation for innovative opportunities,” said Dan Neely, co-founder/CEO of Vermillio, in a statement. “With the support of an innovation leader like Sony Music, Vermillio will continue building our products that ensure generative AI is utilized ethically and securely. At this critical moment in determining the future of AI and how to hold platforms accountable, we are proud to protect the world’s most beloved content and talent.”

“Sony Music is focused on developing responsible generative AI use cases that enhance the creativity and goals of our talent, protect their work, excite fans, and create new commercial possibilities,” added Dennis Kooker, president of global digital business at Sony Music Entertainment. “Dan Neely and the team at Vermillio share our vision that prioritizing proper consent, clear attribution and appropriate compensation for professional creators is foundational to unlocking monetization opportunities in this space. We look forward to expanding our successful collaboration with them as we work to support the growth of trusted platforms by enabling secure AI solutions that are mutually beneficial for technology innovators, artists and rightsholders.”