Microsoft and French startup Mistral said Tuesday they had signed a “multibillion-dollar” deal for the US tech giant to use the AI developer’s computing infrastructure in Europe.
Microsoft and French startup Mistral said Tuesday they had signed a “multibillion-dollar” deal for the US tech giant to use the AI developer’s computing infrastructure in Europe.
I can’t explain. I’m just very sceptical, that MS cuts a billion dollar deal to just use their servers… they could just build server infrastructure for that money…
Server infrastructure is currently bottlenecked, see the price of RAM and storage which is a direct consequence of the AI craze.
Building new data centers is not easy from a hardware perspective, not to mention permits, electrical/connectivity infrastructure, staffing and so on.
Yes, but that only puts an upper limit on the price that anyone would be willing to pay.
It’s like this: Both companies estimate how much money they expect to make from using those servers for their own purposes. In Mistral’s case, that might be a negative amount. Regardless, Microsoft obviously can put the capacity to better use. So they can offer to rent it from Mistral for more than Mistral believes it can make on its own. Basically, MS passes on some of their profits to Mistral.