Microsoft Faces Class-Action Lawsuit Over Alleged ChatGPT Price Manipulation
Eleven ChatGPT Plus subscribers have filed a class-action lawsuit against Microsoft in the U.S. District Court for the Northern District of California. The plaintiffs allege that Microsoft exploited its exclusive cloud computing agreement with OpenAI to artificially inflate subscription prices and degrade service quality between November 2022 and February 2025.
The lawsuit centers on Microsoft's 2019 cloud deal with OpenAI, which allegedly created a significant price disparity between ChatGPT and competing AI services. By controlling OpenAI's access to computing resources through its Azure cloud dominance, Microsoft stands accused of creating an unfair competitive environment in the consumer AI market.
Legal experts suggest this case could set important precedents for cloud computing contracts in the AI sector. The outcome may influence how major tech firms structure partnerships with AI developers moving forward.