Satya Nadella: commitment

Transcript context

…How do I rationalize this statement with what you’ve done over the last few weeks? You’ve announced deals with Iris Energy, with Nebius, and Lambda Labs, and there’s a few more coming as well. You’re going out there and securing capacity that you’re renting from the neoclouds rather than having built it yourself. It’s fine for us because now when you have line of sight to demand, which can be served where people are building, it’s great. In fact we will take leases, we will take build-to-suit, we’ll even take GPUs-as-a-service where we don’t have capacity but we need capacity and someone else has that. And by the way, I would even sort of welcome every neocloud to just be part of our marketplace. Because guess what? If they go bring their capacity into our marketplace, that customer who comes through Azure will use the neocloud, which is a great win for them, and will use compute, storage, databases, all the rest from Azure. So I’m not at all thinking of this as, “Hey, I should just go gobble up all of that myself.” You mentioned how this depreciating asset, in five or six years, is 75% of the TCO of a data center. And Jensen is taking a 75% margin on that. So what all the hyperscalers are trying to do is develop their own accelerator so that they can reduce this overwhelming cost for equipment, to increase their margins.…

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