This statement is wild hyperbole and doesn’t represent the privacy landscape of a default Windows 11 install. Even Windows Recall, an optional opt-in beta product only available on specific hardware, very clearly and specifically in its legally binding privacy policy says that data never leaves your device and is never sent to Microsoft.
Windows is paid for by OEMs. It doesn’t cost much (and it’s free for some classes of devices) but Microsoft still gets paid for it.
Don’t forget they also get paid for a lot of Windows-adjacent services. 365 subscriptions, Bing users clicking on ads, and the whole business ecosystem of Azure, Entra ID, Microsoft Exchange/Outlook 365, etc.
Windows is paid for by OEMs. It doesn’t cost much (and it’s free for some classes of devices) but Microsoft still gets paid for it.
Don’t forget they also get paid for a lot of Windows-adjacent services. 365 subscriptions, Bing users clicking on ads, and the whole business ecosystem of Azure, Entra ID, Microsoft Exchange/Outlook 365, etc.