Seems perfectly clear to me:
“Microsoft has introduced a preview of Azure Dedicated Host, which provides a physical server hosted on Azure and not shared with other customers.”, ref
Microsoft has introduced it's own dedicated hardware.
“Alongside this new service, the company has made licensing changes that will make Microsoft software more expensive for some customers of AWS, Google and Alibaba.”, ref
And made it more expensive for “running Windows Server on any cloud that isn’t Azure”.