Ellen Degeneres is launching her own record label.

The chat show host and 'American Idol' judge has formed eleveneleven to sign up and launch the careers of new musicians after being inspired by 12-year-old singer Greyson Chance.

Ellen has already signed the schoolboy up to the label and hopes to help him launch a pop career after a video of him covering Lady GaGa's 'Paparazzi' became a YouTube sensation.

He appeared on Ellen's chat show to discuss his newfound celebrity status, and was even telephoned by Gaga, who praised him on his vocals and encouraged him to launch a career.

Ellen said in a statement: "Greyson inspired me to start a record label called eleveneleven. He is my first artist and we are making a record together."

Madonna's manager Guy Oseary and Gaga's manager Troy Carter have paired up to co-manage Greyson.

Eleveleleven has been set up in partnership with Telepictures Productions - which makes 'The Ellen DeGeneres Show'.

As Ellen adds to the label's artist collection, she plans to promote them and allow them to perform on her popular US talk show.