That honestly surprises me. Having worked at a small subsidiary of a different big tech giant our costs for the big tech's cloud were charged at cost price at the behest of the accountants.
No actual knowledge of the details, but the story I’ve heard at Microsoft is similar to the AWS one: internal users of Azure pay the same (based on volume and service level) as an external customer would. Supposedly their capacity constrained so any extra compute being used internally can’t be sold externally.
