Microsoft Accused of Restricting AI Supply to Inflate ChatGPT Costs
Microsoft is facing a class action lawsuit alleging that the company used its cloud dominance to restrict AI compute, keeping ChatGPT costs artificially high for nearly three years.
According to the lawsuit, filed in San Francisco federal court, Microsoft "secretly turned an investment into a stranglehold" by restricting the computational resources needed to run ChatGPT through an exclusive cloud agreement with OpenAI.
Microsoft "mercilessly" choked OpenAI's compute supply, artificially inflating AI subscription prices while rushing its own competing products to market.
The lawsuit claims that this anticompetitive conduct resulted in ChatGPT users overpaying for subscriptions and receiving degraded service from November 2022 through February 2025, with prices reaching "100 to 200 times" competitors' rates during a February 2025 AI price war.
- The lawsuit was brought by eleven ChatGPT Plus subscribers.
- The plaintiffs allege that Microsoft's actions caused them to overpay for subscriptions and receive poor service.
Author's summary: Microsoft faces lawsuit for allegedly restricting AI supply to inflate ChatGPT costs.
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