During the company's earnings call on Tuesday, the CEO also said the company will "ensure that protection of intellectual property is high on the agenda."
The pioneering researcher calls artificial intelligence chatbots "quite scary" and fears "bad actors" could use AI in ways that are harmful to society.
Artists can select the "AI-Friendly" button to allow fans to upload AI tracks based on their work.
There will also be a panel on the 50th anniversary of hip-hop.
The fund launches with initial stakes in OpenAI, Anthropic and StabilityAI.
With the "right incentive structures," platforms can eliminate "unauthorized, unwanted, and infringing content entirely," says the CEO.
The mysterious tune appears to be from the same author as "Heart On My Sleeve."
While acknowledging some of the risks, the CEO says AI tools for artists are "great culturally" and could "benefit Spotify" by growing engagement and revenue.
It's creatives vs. computers as artists fight to protect their copyrights.
Artists and labels have legal tools to fight fakes created by artificial intelligence, but massive questions about AI-generated music loom unanswered.