Microsoft, in this case, is pouring billions into this, and the industry at large, from Alphabet to LAION is in an arms race. They will optimize it beyond belief, x100 is rather low, come to think of it. I fully expect to be able to run your own ChatGPT on one DGX H100 unit (640GB GPU memory) in 18 months or less.

> GCP and Azure currently lose money for Google and Microsoft

100% not true for Microsoft. Just listen to the most recent earnings call or read the analyst reports.

Eg https://www.nasdaq.com/articles/microsoft-nasdaq:msft:-cloud... “In fiscal Q2, Microsoft Cloud’s gross profit margin even expanded by about 2% year-over-year to 72%. When you have a business with such high margins growing at 20%+, profitability is set to expand considerably even if revenues in other segments fail to rebound”

At that point, December 5th, 2022, they were still a somewhat regular Azure user. The $10 billion deal from Microsoft came a month later, January 10th, 2023.