Windows 365 is the "cloud PC" that Microsoft is hosting as a VM in Azure. So you have a thin client that only connects to the VM over the internet. It's very niche and pretty expensive. Regular windows licenses, especially with their volume of licensing will be a lot less. But they still save millions on licenses, especially for the M365 office licenses that they now no longer need.
Windows 365 is the "cloud PC" that Microsoft is hosting as a VM in Azure. So you have a thin client that only connects to the VM over the internet. It's very niche and pretty expensive. Regular windows licenses, especially with their volume of licensing will be a lot less. But they still save millions on licenses, especially for the M365 office licenses that they now no longer need.