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A lot of that billions of capital is simply Azure compute credits though.
by traject_ 3y ago
A lot of that billions of capital is simply Azure compute credits though.
- next_xibalba 3y agoThose credits equate to billions of $ in real compute expense for MSFT.
- baking 3y agoI would hope that a billion in credits would not represent a billion in expenses for Microsoft.
- crazygringo 3y agoThey're giving up all the profits from whoever they would have been sold to otherwise. So it adds up the same.
- baking 3y agoSo when they give you $100 in free credits they are losing $100.
- tuwtuwtuwtuw 3y agoMicrosoft giving these credits to OpenAI doesn't mean some other customer won't buy the Azure credits they planned on buying. So I don't see how what you write makes sense. At least assuming Microsoft hasn't run out of capacity in their data centers. I know Azure sometimes have capacity issues but those issues are intermittent and not say 5 year long (or whatever the windoe is when it comes to consuming these credit)
- crazygringo 3y ago> doesn't mean some other customer won't buy the Azure credits they planned on buying Yes it does, because we're taking about GPU availability that is absolutely highly constrained across the economy. If we were talking about CPU credits instead, then you're right that Microsoft would be paying/losing merely cost.