Microsoft is offering authors $5,000 per book to license their works for AI training through publisher HarperCollins, according to a detailed report by Alice Robb in Bloomberg. Authors would receive half of the licensing fee, amounting to $2,500 before agent commissions.
The deal gives Microsoft permission to train its AI models on selected books from HarperCollins’s backlist for three years. The initiative highlights the ongoing debate about fair compensation for creative works used in AI development. According to the Authors Guild, full-time authors earn a median annual income of $20,000, making such offers potentially attractive despite uncertainties about their long-term implications. Brown University economics professor Emily Oster suggests Microsoft’s strategy aims to establish a baseline price for AI training rights by targeting backlist titles.
The arrangement occurs amid multiple lawsuits against tech companies over unauthorized use of copyrighted materials for AI training. Legal experts indicate that these cases could eventually help establish standard compensation rates for creative works used in AI development, though resolutions may take years. Industry professionals remain divided on whether the current offering represents fair value, with some authors accepting the deal while others reject it on principle.