Microsoft Faces Antitrust Lawsuit Over $13 Billion OpenAI Partnership
Microsoft confronts a proposed class action alleging antitrust violations in its $13 billion OpenAI partnership. Filed in San Francisco federal court, the lawsuit claims Microsoft artificially inflated generative AI service prices through exclusive cloud computing agreements.
The complaint asserts Microsoft Leveraged its Azure cloud dominance to restrict computational power for OpenAI's platforms, including ChatGPT. This alleged market manipulation purportedly drove subscription costs higher while degrading product quality across the industry.
Plaintiffs highlight Microsoft's dual strategy of benefiting from OpenAI's technology while developing competing products like Copilot. The filing references this year's AI price wars, noting ChatGPT maintained premium pricing despite market competition - a pattern attributed to Microsoft's alleged anti-competitive conduct.