Matrix string interactions

String configurations have been identified in compactified Matrix theory at vanishing string coupling. We show how the interactions of these strings are determined by the Yang-Mills gauge field on the worldsheet. At finite string coupling, this suggests the underlying dynamics is not well-approximated as a theory of strings. This may explain why string perturbation theory diverges badly, while Matrix string perturbation theory presumably has a perturbative expansion with properties similar to the strong coupling expansion of 2d Yang-Mills theory.