Leaked Microsoft salary data shows the pay gap between Microsoft AI and the rest of the company

But first, AI pays.

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The big story

Making money at Microsoft

How much money do you make?

It’s an uncomfortable question for many, but some workers embrace pay transparency to understand how their salaries compare to their colleagues’.

That’s the case at Microsoft, where hundreds of employees voluntarily share details of their pay and promotions via an unofficial spreadsheet, writes Business Insider’s Ashley Stewart.

The doc includes more than 500 submissions from people who identified themselves as Microsoft employees in the US. Ashley broke down the numbers to calculate Microsoft software engineers’ average total comp, base pay, cash bonus/stock awards, and raise/bonus percentages for this year across multiple levels.

Such an expansive view of a tech giant’s salary ranges is always fascinating. But Microsoft’s comp data is particularly interesting considering its tumultuous recent history around pay.

In 2022, Microsoft raised compensation via stock grants and salary increases for all but its most senior employees. The move came in response to a growing number of its workers feeling underpaid compared to Microsoft’s tech peers like Amazon.

The pay boon was short-lived, though. Last year Microsoft initiated a salary freeze and reduced its bonus and stock award budget. But this year the company restarted performance-based raises.

Microsoft comp data is another example of how big the company is betting on AI.

The average total comp for software engineers in the new Microsoft AI org — $377,611 — was at least $120,000 higher than the averages in Microsoft’s other orgs (Azure, Cloud and AI, Experiences and Devices.)

The group was formed in March as a way to supercharge Microsoft’s consumer-AI strategy, which includes its Copilot AI chatbot and Bing search engine. Mustafa Suleyman, a DeepMind cofounder, runs the team.

As a reminder, this pay data is based on Microsoft employees’ self-reporting, so it’s not a complete picture. However, the pay gap between Microsoft AI and the rest of the company is undeniable.

On the one hand, it’s understandable why Microsoft would shell out big for AI talent. The company clearly believes it’s the future of the industry, and they’re not alone. So many deep-pocketed tech firms chasing after a small pool of AI talent is bound to drive the price up.

But that doesn’t make it an easier pitch to the other employees. While they work on the products keeping the lights on at Microsoft, their colleagues get paid significantly more to focus on stuff with a questionable path to profitability.

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The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Milan Sehmbi, fellow, in London. Amanda Yen, fellow, in New York.