Leaked document: Microsoft pays, on average, $120K more per year for an AI software engineer compared to someone working in Azure
Microsoft’s focus and investment in artificial intelligence is reflected in its employees pay in its AI division.
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What you need to know
Over the past few years, we’ve received subtle hints and rough estimates of Microsoft employees' pay scale. For instance, pera leaked payment guideline, the highest-ranking Microsoft employee receives a base pay ranging from $231,700 to $361,500, a hiring bonus of up to $1.2 million, and $1 million in annual stock awards. However, the lowest-ranking employee at the tech firm receives $42,500 with no extra compensation.
Interestingly, months before the payment guideline leak,a Microsoft insider polldisclosed that more than half of the employees were willing to leave their jobs if a better offer at a rival company presented itself. The employees cited the lack of a pay rise negatively impacted their performance index and morale, prompting them to seek greener pastures elsewhere.
As it happens, Microsoft’s AI department employees are taking a bigger check home, according to a spreadsheet obtained byBusiness Insiderfeaturing intricate details about the salary ranges of Microsoft employees. This isn’t surprising; Microsoft is all gas and has no brakes in AI, especially after making amulti-billion dollar investment in OpenAI’s technologyand integrating it across its tech stack.
Per the spreadsheet,an average Software Engineer in Microsoft’s new AI department earns up to $377,611. This is at least $120,000morethan the average salary of an employee in Microsoft’s Azure and Cloud division.
AI-focused Microsoft
As you may know, Microsofthired DeepMind and Inflection co-founder Mustafa Suleyman to lead its new AI divisionas part of the company’s internal reorg strategy to get an early lead in the AI landscape, with products like with products like Bing, Edge, andCopilotat the forefront.
While the authenticity of the spreadsheet remains slim at best, it potentially paints a picture of Microsoft’s vision for the future with AI. It also poses a bone of contention among employees as it may make some employees feel undervalued for their efforts, ultimately impacting their performance index.
Aside from the vast disparity in pay, Microsoft reportedlytransferred some employees from the Teams chat app umbrella to its AI department to assist with Copilot-themed projects. Interestingly, the company announced its plans tostop shipping new Copilot experiencesto users and indicated it would use the time to enhance and improve existing experiences.
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RELATED:Microsoft to end the freeze on employee salaries
Elsewhere, investors have raised concerns over Microsoft’s exorbitant expenditure and investment in AI and find it difficult to establish a clear path for generating revenue and profits. However, market analysts and experts sayMicrosoft’s early investment and adoption in AIincreased its market valuation, making itthe world’s most valuable company ahead of Apple and NVIDIAearlier this year.
According toMicrosoft’s latest Work Trend Index report, most company executives will only hire professionals with an AI aptitude. The execs have highlighted concern for a lack of talent to fill vacancies at their firms, prompting “a 142x increase in LinkedIn members adding AI skills like Copilot and ChatGPT to their profiles.”
Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. You’ll also catch him occasionally contributing at iMore about Apple and AI. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.
