Analysis services live connection creates dataset in service

Hi Capstone ，

Yes. If you publish to Power BI Service from Power BI Desktop ,it will create a dataset.

And There are five different dataset types, created in the following ways:

• Connecting to an existing data model that isn't hosted in a Power BI capacity
• Uploading a Power BI Desktop file that contains a model
• Uploading an Excel workbook (containing one or more Excel tables and/or a workbook data model), or uploading a CSV (comma-separated values) file
• Using the Power BI service to create a push dataset
• Using the Power BI service to create a streaming or hybrid streaming dataset

Except for streaming datasets, the dataset represents a data model, which leverages the mature modeling technologies of Analysis Services.

To learn more details ,refer: https://docs.microsoft.com/en-us/power-bi/connect-data/service-datasets-understand 

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Best Regards

Lucien