Class Action Alleges Microsoft Choked AI Supply to Lift ChatGPT Costs
Microsoft is being accused of using its cloud dominance to restrict AI compute, keeping ChatGPT costs artificially high for nearly three years.
ChatGPT users have accused Microsoft of "mercilessly" choking OpenAI's compute supply through an exclusive cloud agreement, artificially inflating AI subscription prices while simultaneously rushing its own competing products to market.
Microsoft "secretly turned an investment into a stranglehold,"
using its Azure cloud dominance to restrict the computational resources needed to run ChatGPT, keeping prices at levels reaching "100 to 200 times" competitors' rates during a February 2025 AI price war.
Eleven ChatGPT Plus subscribers brought the case, alleging they overpaid for subscriptions and received degraded service from November 2022 through February 2025 due to Microsoft's anticompetitive conduct.
Author's summary: Microsoft faces a class action lawsuit for allegedly restricting AI compute supply.
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