They are in a huge growth phase. Any rate-based service in a hyper-growth mode is going to lose money as they make capital and personnel investments.

I used to run a pre-O365 large exchange shared service that topped off at ~200k users. When we were growing 50% year over year, we were “losing” a fortune depending on how to measure it. You want to do that, as making a profit today may mean losing the lifetime value of a long term customer.

I think Google has a good thing going. AWS is the incumbent, but has its own legacy to deal with. Microsoft dangles carrots for Azure, but the Microsoft sales culture will start beating customers over the head with the carrots.