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I'm not savvy on investment terms, but most of these bullet points seem like a loss for Microsoft. Having a customer locked in to buying $250bn of Azure servic
by onion2k 1y ago
I'm not savvy on investment terms, but most of these bullet points seem like a loss for Microsoft.
Having a customer locked in to buying $250bn of Azure services is a fairly big benefit.
- _2d30 1y agoMSFT had a right to compute exclusivity. "Microsoft will no longer have a right of first refusal to be OpenAI’s compute provider." Seems like a loss to me!
- davey48016 1y agoI assume that first refusal required price matching. If the $250B is at a higher price than whatever AWS, GCP, etc. were willing to offer, then it could be a win for Microsoft to get $250B in decent margin business over a larger amount of break even business.
- yreg 1y agoThe risk stays somewhat similar. If OpenAI collapses it won't spend those 250B.
- ml-anon 1y agoOr a massive opportunity cost. I’d imagine 250Bn of OAI business is way lower margin than 250Bn of some other random companies that don’t need H200s.
- fulafel 1y agoWhy does this cost them business with the other random companies?