CLAICYLGApr 16, 2025

Position: The Most Expensive Part of an LLM should be its Training Data

arXiv:2504.12427v117 citationsh-index: 17ICML
Originality Synthesis-oriented
AI Analysis

It addresses the problem of unfair compensation for data producers in AI development, proposing a shift in cost allocation to support ethical practices.

This position paper argues that the most expensive part of producing a Large Language Model (LLM) should be compensating the human labor behind its training data, estimating that dataset costs are 10-1000 times larger than training costs based on a study of 64 LLMs.

Training a state-of-the-art Large Language Model (LLM) is an increasingly expensive endeavor due to growing computational, hardware, energy, and engineering demands. Yet, an often-overlooked (and seldom paid) expense is the human labor behind these models' training data. Every LLM is built on an unfathomable amount of human effort: trillions of carefully written words sourced from books, academic papers, codebases, social media, and more. This position paper aims to assign a monetary value to this labor and argues that the most expensive part of producing an LLM should be the compensation provided to training data producers for their work. To support this position, we study 64 LLMs released between 2016 and 2024, estimating what it would cost to pay people to produce their training datasets from scratch. Even under highly conservative estimates of wage rates, the costs of these models' training datasets are 10-1000 times larger than the costs to train the models themselves, representing a significant financial liability for LLM providers. In the face of the massive gap between the value of training data and the lack of compensation for its creation, we highlight and discuss research directions that could enable fairer practices in the future.

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