music generation — two paradigms, one legal landscape A. AR token LM over neural codec MusicGen · ACE-Step · YuE · VALL-E-Music text prompt → T5 / CLAP embedding → AR transformer over EnCodec tokens → EnCodec decoder → audio 32 kHz streams (future); structured songs with lyrics drift past 30 s; loops; needs crossfade B. latent diffusion over mel / latent codec Stable Audio · AudioLDM 2 · Riffusion text → CLAP embedding → latent diffusion (DDPM / flow) → decoder → audio 44.1 / 48 kHz best for loops, textures, sound design weaker structure, weaker vocals 2026 leaderboard + legal note MusicGen-large 3.3B 30 s no vocals MIT - instrumental baseline Stable Audio Open 1.2B 47 s no vocals non-commercial - loops, textures ACE-Step XL (Apr 26) 4B > 2 min vocals Apache-2.0 - open full-song Suno v5 (closed) ? 4 min vocals commercial - ELO 1293; quality leader Udio v4 (closed) ? 4 min vocals+stems commercial - inpainting, stem split legal: Warner + UMG settled with Suno / Udio in 2025-26; disclosure + watermarking required (EU AI Act, CA SB 942) safe-to-ship: instrumental MIT/CC0 · commercial API with license · train on owned catalog