Class Action Alleges Microsoft Choked AI Supply to Lift ChatGPT Costs - Decrypt

Microsoft Accused of Restricting AI Compute 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.

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 at levels reaching "100 to 200 times" competitors' rates during a February 2025 AI price war.

Author's summary: Microsoft faces lawsuit for allegedly inflating ChatGPT costs.

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Decrypt Decrypt — 2025-10-14

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