As generative AI tools rapidly reshape creative industries, often sparking copyright battles and anxieties about artist displacement, one Icelandic startup is drawing a line in the sand. Overtune, a music creation platform, has secured fresh backing from prominent tech industry veterans by explicitly championing an "assist, not replace" philosophy for artificial intelligence in music.
The company recently announced a new round of funding from a heavyweight group of strategic investors and unveiled LoopGen, an AI feature designed to augment, not automate, the work of musicians, according to reporting from Musically. While the funding amount was not disclosed, the move signals a strategic bet on collaborative AI winning over creators wary of full automation.
Strategic backing from tech insiders: Overtune's latest investors include senior figures with deep AI and tech experience, such as Meta AI engineering leader Tosh Rayadhurgam, Uber's head of applied AI products Dhruv Gulati, YouTube’s principal for music publishing business development Mohnish Sani, and IBM’s head of embeddable AI Kunal Sawarkar, alongside executives formerly or currently with Apple, Microsoft, and Samsung, as detailed by Musically. Early investor Goodwater Capital also participated. This roster suggests significant validation from individuals shaping the AI landscape for Overtune's artist-centric approach.
Assist, not replace: Central to Overtune’s strategy is LoopGen, a new text-to-loop feature integrated into its sequencer app. It allows users to generate musical loops via text prompts to complement their existing work. Crucially, LoopGen is built using Meta’s MusicGen AI model, which Musically notes was trained on 20,000 hours of licensed audio. This emphasis on ethically sourced training data, highlighted by sources like aimusicpreneur.com, positions Overtune distinctly from AI music competitors like Suno and Udio, who currently face major label lawsuits over alleged copyright infringement.
Taking aim at automation: Overtune CEO Sigurdur Arnason has been vocal about his disagreement with the direction some AI music tools are taking. He told Musically he found comments made earlier this year by Suno CEO Mikey Shulman – suggesting most people don't enjoy the process of making music – to be "infuriating," "wrong," and "arrogant." Arnason argues that AI should amplify creativity, not bypass it. "Someone has to stand up and say that’s just not the truth," Arnason stated, framing the moment as needing to pick sides between "one button" generation and tools that enhance the artistic process. He acknowledged the significant funding difference, calling it a "David versus Goliath" situation compared to Suno's reported $125 million raise (as mentioned in the Musically interview context), but remains committed to Overtune's vision.
Integrating into the ecosystem: Furthering its strategy of embedding within existing creator workflows, Overtune recently partnered with Muse Group, the company behind popular tools like Ultimate Guitar and Audacity. Overtune’s browser-based editor is now exclusively available via Muse Group’s MuseHub platform, aiming to make its tools accessible to MuseHub's large user base of "musically curious creators," Arnason told whynow.co.uk. Khaled Said, Head of Product & Partnerships at MuseHub, added that Overtune’s approach aligns with Muse Group's mission to provide tools that inspire creativity.
Company background: Founded in 2020 by Arnason, Jason Dadi Gudjonsson, and Petur Eggerz Petursson, Overtune initially focused on a mobile app allowing users to arrange beats and record vocals for social media. The company closed a $2 million seed round previously, with backers including Guitar Hero founder Charles Huang, former Sony Music UK CEO Nick Gatfield, and Gabriel Jagger's media company Whynow, according to Overtune's website. This latest funding round and the launch of LoopGen mark a significant evolution towards integrating AI assistance into its platform for a broader range of music creators.