… It points to the wider AI industry’s awkward little habit of burning cash faster than it can invent pricing tiers. “The prices of those AI services are going up, but the cost of running them is going down, but not nearly fast enough. …
… Unable to rely on a world-beating frontier model of its own, Microsoft is using its scale and money to push AI models towards commodity pricing and behave like normal software tools. …
… The deal provided compute capacity equivalent to “110,000 NVIDIA GPUs, CPUs, memory, and other related components” for $920 million a month. …
… That makes pricing any offering near $2 trillion look awkward, especially when key revenue assumptions remain as bendy as warm plastic. …
… The deal, signed in early May, gives Anthropic, maker of Claude, all the computing capacity at one of Musk’s main data centres. …