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What training data costs, from filings and studies

How much training data costs, from filings and published studies: dated figures for licensed content, human labels and model-made labels, what each covers and what it leaves out.

Cover of the full report: What training data costs, from filings and studies
The research behind this article, with every source listed. 19 pages.

Key points

From the Summary of the full report

  1. No filing reviewed here discloses a price per record, token, image or hour of licensed content. Reddit's Form S-1 reported data licensing arrangements from January 2024 with an aggregate contract value of $203.0 million over two to three years, and named no buyer [1].
  2. Studies from 2021 to 2023 put human labels for text tasks at about $0.07 to $0.30 each (derived from the costs they paid or estimated), and a 2023 benchmark estimated an average payment of about $95 an hour for the experts who wrote and validated its questions [18, 19, 24, 25].
  3. Model-made labels cost a fraction of human labels at the model prices of 2021 to 2023: less than $0.003 per annotation in a 2023 PNAS study, and 50% to 96% less for the same downstream performance in a 2021 study [23, 24].

How much training data costs depends on how it is obtained. Public filings and published studies give dated figures for licensed content, human labels, model-made labels and the preparation of free data. None of the filings reviewed here discloses a price per record, token, image or hour of licensed content [1, 2, 4, 5, 6].

The figures here are about data. One published estimate of what frontier models cost to train, revised in February 2025, counts hardware, energy, cloud rental and staff, and lists "the acquisition of data for model training" among the costs its methods leave out [13].

How much does training data cost?

Each figure carries its date and its evidence class.

Route Dated figure Evidence class
Licensed platform data $203.0 million aggregate contract value over two to three years, January 2024 [1] Contract value in a filing
Licensed stock media metadata $203.3 million Data, Distribution, and Services revenue in 2025, a line that includes other services [4] Revenue line or backlog in a filing
Licensed publishing content $33.1 million and $16.0 million in two segments, year to 30 April 2026 [5] Revenue line or backlog in a filing
Human labels for text tasks About $0.07 to $0.30 a label, studies of 2021 to 2023 (derived) [18, 24, 25] Reported or estimated cost per label
Expert question writing and validation About $95 an hour on average, 2023 [19] Expert payment schedule
Model-made labels Less than $0.003 per annotation, 2023 [23] Reported or estimated cost per label
Preparing free web text 80,000 H100 GPU hours to choose filters, 2024 [12] Compute hours
Unlicensed acquisition Approximately $3,000 per work, final approval 20 July 2026 [8, 9] Settlement payment

A contract value is what buyers committed to one seller over a term, a revenue line is what one seller recognized in a year, and a cost per label is what one team paid, or estimated, for one task. None of them is a price list.

Licensed content: contract values and revenue lines

Reddit's Form S-1 of 22 February 2024 reported data licensing arrangements entered in January 2024 "with an aggregate contract value of $203.0 million and terms ranging from two to three years", and an expected minimum of $66.4 million of revenue in 2024 [1]. Spread evenly, that is about $68 million to $102 million a year (derived) [1]. The filing names no buyer and does not split the value by use.

Shutterstock's 10-K for 2025 reports $203.3 million of Data, Distribution, and Services revenue, up from $137.3 million in 2023 [4]. The line also covers Giphy and Shutterstock Studios, so it is wider than training data [4]. Wiley's 10-K for the year to 30 April 2026 reports "Research AI licensing revenue" of $33.1 million, against about $11 million a year earlier, and "Learning AI licensing revenue" of $16.0 million, against about $29 million [5]. CuriosityStream's 10-K for 2025 reports delivering "hundreds of thousands of hours of video and audio" to technology companies, with no price per hour [6].

The Copyright Office's report on generative training, listed on 8 November 2026 only in its pre-publication version of 9 May 2025, records one commenter's suggestion that rightsholders "can negotiate licenses that forgo up-front payments or traditional royalties in exchange for later shares in revenues", and the Office itself writes that compensation based on a percentage of revenue or profits "may be an attractive alternative for smaller developers" [7, 36].

One court record prices acquisition without a license. A class settlement between a model developer and authors and publishers, given final approval on 20 July 2026, provides approximately $3,000 per work before costs and fees from a $1.5 billion fund [8, 9]. Its release states that it is not "a license to torrent, scan, or train AI models on any copyrighted works" [9]. The figure is a payment for past conduct. This article is research and draws no legal conclusion.

Data annotation cost for human labels

Three studies report what human labels cost or would cost: one paid its annotators and two estimated the price [18, 24, 25]. Wang et al. priced human labels at $0.11 each in 2021, estimated from Google Cloud Platform's crowdsourced labeling rates [24]. Ding et al., from interviews with professional annotators, put 3,000 sentiment labels at $221 to $300 in 2023, about $0.07 to $0.10 each (derived) [25]. The AlpacaFarm team (2023) paid annotators a median $21 an hour, for a one-time cost of $3,000 for preference labels on 10,000 instructions, about $0.30 a comparison (derived) [18].

Expert work costs more. The GPQA authors (November 2023), who hired 61 contractors with or pursuing PhDs to write and validate graduate-level questions, estimate an average payment of about $95 an hour [19]. Humanity's Last Exam (January 2025) offered a $500,000 prize pool for a benchmark of 2,500 questions [20].

Amazon Mechanical Turk, the crowd marketplace two of the studies here used for their human baseline [18, 23], "permanently closed on September 30, 2026" [14]. This article infers that cost comparisons priced against Mechanical Turk lost their live baseline on that date. No source reviewed measures label prices since.

Paying for labels now includes checking them. One 2023 study estimated that 33% to 46% of crowd workers on a summarization task used LLMs [21]. Another, in 2021, estimated an average of at least 3.3% label errors in the test sets of 10 widely used datasets [22]. Agreement between labelers is one check, covered in measuring label quality with inter-annotator agreement.

Model-made labels and their measured cost

Labels from a model cost a fraction of human labels at the model prices of each study's year. Gilardi et al. (2023) found that a commercial chat model family's per-annotation cost was "less than $0.003", "about thirty times cheaper than MTurk", with zero-shot accuracy about 25 percentage points above crowd workers on average [23]. Wang et al. found it cost "50% to 96% less" to reach the same downstream performance with model labels in 2021, counting only the per-label charge [24].

Cheap labels do not always match a full human set. In Ding et al., 6,000 model labels costing $22.63 beat 3,000 human labels estimated at $221 to $300 on accuracy, while the full set of 67,349 human labels scored higher than both [25].

Generated data can be cheap in cash and costly in rights. Stanford's Alpaca team, in March 2023, generated 52,000 instructions and outputs for less than $500 through a commercial model's API, then barred commercial use, in part because that model's terms of use prohibit building competing models [26]. A 2024 Nature study found that indiscriminate training on model-generated content "causes irreversible defects in the resulting models" [27]. Model labels come from inference, through an API or a self-hosted model, and the break-even between the two is worked through in self-hosted LLM vs API cost.

Free data still costs compute and checking

Common Crawl's site, viewed on 8 November 2026, describes "a free, open repository of web crawl data" of over 300 billion pages [10]. Preparing it is the expense. The FineWeb team (2024) trained over 70 models, an estimated 80,000 H100 GPU hours, to choose the filters for a 15-trillion-token dataset from 96 Common Crawl snapshots, and spent 6,000 more H100 GPU hours scoring it for educational quality [12].

Rights checking costs too. A 2023 audit of more than 1,800 text datasets found license omission of 70% or more and error rates of 50% or more on widely used hosting sites [35].

The cost after delivery

Licenses end. Reddit's remaining performance obligations in contracts longer than a year, mostly long-term content licensing contracts, fell from $143.7 million at the end of 2025 to $62.4 million at 30 September 2026, and its 10-Q says the agreements with the two partners behind substantially all of its licensing contract value "are approaching the end of their respective current terms" [2, 3].

Evaluation repeats. AlpacaFarm (2023) reports a recurring $242 to evaluate each model on 805 instructions with human annotators [18]. Maintenance adds up: Sculley et al. wrote in 2015 that "it is common to incur massive ongoing maintenance costs in real-world ML systems" [30].

Supply limits on public text

A projection published in June 2024 puts the point where training datasets reach the size of the stock of public human text between 2026 and 2032, with a median year of 2028 [33]. A 2024 audit of 14,000 web domains found that a single year of new restrictions left "~5%+ of all tokens in C4, or 28%+ of the most actively maintained, critical sources in C4, fully restricted from use" [34].

What sets the cost of a custom dataset

Across the evidence, cost follows scope. The sources set the license and its terms. The fields and labels set the labeling cost. History and refresh set how often data is bought, labeled and delivered again. A build also has to resolve the entities that appear across its sources, the work described in how entity resolution matches records.

A custom dataset from Rillor's data services is specified by the same items: the sources in scope, the entities and fields, the format, how far back the records reach, the regions, the refresh cadence and the delivery, and it comes with its schema, source provenance, lineage, version history, quality notes and stated limits. Writing that scope down before a build starts is the subject of how to specify a training dataset.

Read the full report

The full report adds each filing's wording, the evidence classes, the label cost tables and the limits of every figure.

The full report

What training data costs, from filings and studies

The research behind this article, with every source listed. 19 pages.

  1. Summary
  2. Background
  3. Method
  4. Findings
  5. Implications
  6. Limits of this analysis
  7. Sources

Sources

  1. Reddit, Inc. Registration Statement on Form S-1. U.S. Securities and Exchange Commission, 22 February 2024, viewed 8 November 2026. https://www.sec.gov/Archives/edgar/data/1713445/000162828024006294/reddits-1q423.htm
  2. Reddit, Inc. Annual Report on Form 10-K for the year ended 31 December 2025. U.S. Securities and Exchange Commission, 6 February 2026, viewed 8 November 2026. https://www.sec.gov/Archives/edgar/data/1713445/000171344526000022/rddt-20251231.htm
  3. Reddit, Inc. Quarterly Report on Form 10-Q for the quarter ended 30 September 2026. U.S. Securities and Exchange Commission, 30 October 2026, viewed 8 November 2026. https://www.sec.gov/Archives/edgar/data/1713445/000171344526000116/rddt-20260930.htm
  4. Shutterstock, Inc. Annual Report on Form 10-K for the year ended 31 December 2025. U.S. Securities and Exchange Commission, 17 February 2026, viewed 8 November 2026. https://www.sec.gov/Archives/edgar/data/1549346/000154934626000008/sstk-20251231.htm
  5. John Wiley & Sons, Inc. Annual Report on Form 10-K for the year ended 30 April 2026. U.S. Securities and Exchange Commission, 24 June 2026, viewed 8 November 2026. https://www.sec.gov/Archives/edgar/data/107140/000162828026045111/jwa-20260430.htm
  6. CuriosityStream Inc. Annual Report on Form 10-K for the year ended 31 December 2025. U.S. Securities and Exchange Commission, 12 March 2026, viewed 8 November 2026. https://www.sec.gov/Archives/edgar/data/1776909/000162828026017346/curi-20251231.htm
  7. Copyright and Artificial Intelligence, Part 3: Generative AI Training (pre-publication version). U.S. Copyright Office, 9 May 2025, viewed 8 November 2026. https://www.copyright.gov/ai/Copyright-and-Artificial-Intelligence-Part-3-Generative-AI-Training-Report-Pre-Publication-Version.pdf
  8. Anthropic Copyright Settlement. Settlement Administrator, viewed 8 November 2026. https://www.anthropiccopyrightsettlement.com/
  9. Notice of $1.5 Billion Proposed Class Action Settlement, Bartz v. Anthropic PBC, No. 3:24-cv-05417 (N.D. Cal.), long-form notice. Settlement Administrator, 18 November 2025, viewed 8 November 2026. https://assets-us-01.kc-usercontent.com:443/1eeb16db-4934-006e-40a6-38fa91285ebb/ce109a57-390c-4d76-ad65-5807d4830fe5/ANT%20-%20Long-Form%20Notice_Updated%20Deadline%201.8.2026.pdf
  10. Common Crawl. Common Crawl Foundation, viewed 8 November 2026. https://commoncrawl.org/
  11. The FineWeb Datasets: Decanting the Web for the Finest Text Data at Scale. Guilherme Penedo and others, NeurIPS 2024 Datasets and Benchmarks Track, arXiv 2406.17557, version 2, 31 October 2024, viewed 8 November 2026. https://arxiv.org/abs/2406.17557
  12. The rising costs of training frontier AI models. Ben Cottier and others, arXiv 2405.21015, version 2, 7 February 2025, viewed 8 November 2026. https://arxiv.org/abs/2405.21015
  13. Amazon Mechanical Turk Help. Amazon Mechanical Turk, viewed 8 November 2026. https://www.mturk.com/help
  14. AlpacaFarm: A Simulation Framework for Methods that Learn from Human Feedback. Yann Dubois and others, NeurIPS 2023, arXiv 2305.14387, version 4, 8 January 2024, viewed 8 November 2026. https://arxiv.org/abs/2305.14387
  15. GPQA: A Graduate-Level Google-Proof Q&A Benchmark. David Rein and others, arXiv 2311.12022, 20 November 2023, viewed 8 November 2026. https://arxiv.org/abs/2311.12022
  16. Humanity's Last Exam. Long Phan and others, arXiv 2501.14249, 24 January 2025, latest version 19 October 2026, viewed 8 November 2026. https://arxiv.org/abs/2501.14249
  17. Artificial Artificial Artificial Intelligence: Crowd Workers Widely Use Large Language Models for Text Production Tasks. Veniamin Veselovsky, Manoel Horta Ribeiro and Robert West, arXiv 2306.07899, 13 June 2023, viewed 8 November 2026. https://arxiv.org/abs/2306.07899
  18. Pervasive Label Errors in Test Sets Destabilize Machine Learning Benchmarks. Curtis G. Northcutt, Anish Athalye and Jonas Mueller, NeurIPS 2021 Datasets and Benchmarks, arXiv 2103.14749, version 4, 7 November 2021, viewed 8 November 2026. https://arxiv.org/abs/2103.14749
  19. ChatGPT Outperforms Crowd-Workers for Text-Annotation Tasks. Fabrizio Gilardi, Meysam Alizadeh and Maël Kubli, Proceedings of the National Academy of Sciences 120(30), arXiv 2303.15056, version 2, 19 July 2023, viewed 8 November 2026. https://arxiv.org/pdf/2303.15056v2
  20. Want To Reduce Labeling Cost? GPT-3 Can Help. Shuohang Wang and others, arXiv 2108.13487, 30 August 2021, viewed 8 November 2026. https://arxiv.org/abs/2108.13487
  21. Is GPT-3 a Good Data Annotator? Bosheng Ding and others, ACL 2023, arXiv 2212.10450, version 2, 14 June 2023, viewed 8 November 2026. https://arxiv.org/abs/2212.10450
  22. Alpaca: A Strong, Replicable Instruction-Following Model. Rohan Taori and others, Stanford Center for Research on Foundation Models, 13 March 2023, viewed 8 November 2026. https://crfm.stanford.edu/2023/03/13/alpaca.html
  23. AI models collapse when trained on recursively generated data. Ilia Shumailov and others, Nature 631, 755 to 759, 24 July 2024, viewed 8 November 2026. https://www.nature.com/articles/s41586-024-07566-y
  24. Hidden Technical Debt in Machine Learning Systems. D. Sculley and others, Advances in Neural Information Processing Systems 28 (NIPS 2015), NeurIPS, 2015, viewed 8 November 2026. https://papers.nips.cc/paper_files/paper/2015/hash/86df7dcfd896fcaf2674f757a2463eba-Abstract.html
  25. Will we run out of data? Limits of LLM scaling based on human-generated data. Pablo Villalobos and others, arXiv 2211.04325, version 2, 4 June 2024, viewed 8 November 2026. https://arxiv.org/abs/2211.04325
  26. Consent in Crisis: The Rapid Decline of the AI Data Commons. Shayne Longpre and others, arXiv 2407.14933, 24 July 2024, viewed 8 November 2026. https://arxiv.org/abs/2407.14933
  27. The Data Provenance Initiative: A Large Scale Audit of Dataset Licensing & Attribution in AI. Shayne Longpre and others, arXiv 2310.16787, 4 November 2023, viewed 8 November 2026. https://arxiv.org/abs/2310.16787
  28. Copyright and Artificial Intelligence. U.S. Copyright Office, viewed 8 November 2026. https://www.copyright.gov/ai/

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