Dwarkesh Patel

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All right, back to Satya.

I guess I have a question even stepping back from this of, okay, I take your point that it's a better business to be in all else equal to have

a long tail of customers who can have higher margin from rather than just serving bare metal to a few labs.

But then there's a question of, okay, which way is the industry evolving?

And so if we believe we're on the path to smarter and smarter AIs, then why isn't the shape of the industry that the open AIs and anthropics and deep minds are the platform which the long tail of

enterprises are actually doing business with, where they need bare metal, but they are the platform.

What is the long tail that is directly using Azure?

Because you want to use the general kind of core.

So you mentioned how you're depreciating this asset that's five, six years, and this is the majority of the 75% of the TCO 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 the margins.

Speaking of rights, one thing, you had an interview a couple of days ago where you said that we have rights to the new agreement you made with OpenAI.

You have rights, the exclusivity to...

the stateless API calls that OpenAI makes.

And we were sort of confused about if there's any state whatsoever.

I mean, you were just mentioning a second ago that all these complicated workloads that are coming up are going to require memory and databases and storage and so forth.

And is that now not stateless if ChatGPT is storing stuff on sessions?

So as Satya explained, as AI agents get more capable, you're going to need more and more observability into what they're doing.