MSFT needs companies like OpenAI to give Azure credits to for their valuation to... | Hacker News

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cuckatoo 7 months ago | parent | context | favorite | on: Microsoft strikes deal with Mistral in push beyond...

MSFT needs companies like OpenAI to give Azure credits to for their valuation to continue soaring. The deferred revenue on their balance sheet from the unspent Azure credits they give as investment are worth much more to their market cap than $80B.

jart 7 months ago [–]

It sounds like they took the Federal Reserve's business model and applied it to computing.

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