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Leaked document: Microsoft pays, on average, $120K more per year for an AI software engineer compared to someone working in Azure
By Kevin Okemwa,
10 hours ago
What you need to know
A leaked spreadsheet reportedly belonging to Microsoft employees discloses that the company is paying employees in the AI division handsomely compared to counterparts in Azure and Cloud.
An average AI software engineer is paid up to $377,611, which is $120,000 more than the average salary of an employee in the Azure division.
Microsoft's focus has shifted to AI-themed projects like Copilot while other crucial departments seemingly take a backseat.
Over the past few years, we've received subtle hints and rough estimates of Microsoft employees' pay scale. For instance, per a 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 poll disclosed 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 by Business Insider featuring 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 a multi-billion dollar investment in OpenAI's technology and 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 $120,000 more than the average salary of an employee in Microsoft's Azure and Cloud division.
AI-focused Microsoft
Windows 11 Copilot (Image credit: Windows Central)
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.
According to Microsoft'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."
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