Microsoft Accused of Restricting AI Supply to Inflate ChatGPT Costs
Microsoft is facing a class action lawsuit alleging that it used its cloud dominance to restrict AI compute, keeping ChatGPT costs artificially high for nearly three years.
ChatGPT users claim that Microsoft "mercilessly" choked OpenAI's compute supply through an exclusive cloud agreement, resulting in inflated AI subscription prices. Meanwhile, Microsoft allegedly rushed its own competing products to market.
Microsoft "secretly turned an investment into a stranglehold,"
The lawsuit, filed in San Francisco federal court, states that Microsoft's Azure cloud dominance restricted computational resources needed to run ChatGPT, keeping prices 100 to 200 times higher than competitors' rates during a February 2025 AI price war.
Author's summary: Microsoft faces lawsuit for allegedly inflating ChatGPT costs.
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