zlacker

Azure has ~60% profit margin. So it's more like MS gave $5.2B in Azure Credits in return for 75% of OpenAI profits upto $13B * 100 = $1.3 trillion.

Which is a phenomenal deal for MSFT.

Time will tell whether they ever reach more than $1.3 in profits.

>>nojvek+(OP)
I highly doubt it is that simple. It's an opportunity cost of potentially selling those same credits for market price.

>>nights+O2
OpenAI is a big marketing piece for Azure. They go to every enterprise and tell them OpenAI uses Azure Cloud. Azure AI infra powers the biggest AI company on the planet. Their custom home built chips are designed with Open AI scientists. It is battle hardened. If anyone sues you for the data, our army of lawyers will fight for you.

No enterprise employee gets fired for using Microsoft.

It is a power play to pull enterprises away from AWS, and suffocating GCP.

>>nojvek+(OP)
Nice argument, you used a limit to look like a projection :-).

75% of profits of a company controlled by a non profit whose goals are different to yours. By the way a normal company this cap would be ∞.