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

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Hauptverfasser: Kandpal, Nikhil, Raffel, Colin
Format: Preprint
Veröffentlicht: 2025
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author Kandpal, Nikhil
Raffel, Colin
author_facet Kandpal, Nikhil
Raffel, Colin
contents 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.
format Preprint
id arxiv_https___arxiv_org_abs_2504_12427
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Position: The Most Expensive Part of an LLM should be its Training Data
Kandpal, Nikhil
Raffel, Colin
Computation and Language
Artificial Intelligence
Computers and Society
Machine Learning
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.
title Position: The Most Expensive Part of an LLM should be its Training Data
topic Computation and Language
Artificial Intelligence
Computers and Society
Machine Learning
url https://arxiv.org/abs/2504.12427