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Microsoft OpenAI antitrust lawsuit alleges that Microsoft’s exclusive cloud arrangement with OpenAI illegally limited compute supply, inflating ChatGPT subscription prices and reducing service quality for millions of users; plaintiffs seek damages and a permanent injunction against the practice.
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Claim: Microsoft used an exclusive cloud deal to restrict compute supply and raise ChatGPT prices.
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Plaintiffs seek unspecified damages dating to ChatGPT’s public launch in November 2022 and a court order to stop the alleged restrictions.
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Microsoft has invested over $13 billion in OpenAI; Reuters reported OpenAI began buying compute from Google in June 2024, easing some limits.
Microsoft OpenAI antitrust lawsuit: Consumers allege an exclusive cloud deal inflated ChatGPT prices and reduced quality. Read COINOTAG’s factual update and next steps.
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Published: 2025-10-13 | Updated: 2025-10-13 | Author: COINOTAG
What is the Microsoft OpenAI antitrust lawsuit?
The Microsoft OpenAI antitrust lawsuit is a proposed class action filed in a San Francisco federal court alleging that Microsoft’s exclusive cloud computing arrangement with OpenAI violated antitrust laws by restricting the supply of compute power, which plaintiffs say led to higher prices and diminished product quality for users of generative AI services like ChatGPT.
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How did the alleged exclusive cloud deal work and why do plaintiffs object?
Plaintiffs allege that Microsoft’s multi-billion-dollar investment in OpenAI—reported at more than $13 billion to date—was paired with terms that made Microsoft Azure OpenAI’s primary or exclusive cloud provider, giving Microsoft the ability to limit access to essential computational resources. According to court filings summarized in Reuters, the agreement is said to have allowed Microsoft to favor its own AI offerings such as Microsoft Copilot while restricting OpenAI’s ability to source compute elsewhere, which the plaintiffs argue reduced market competition and kept ChatGPT subscription prices “substantially higher” than some competitors.
Frequently Asked Questions
Who filed the class action and what are they asking for?
The proposed class action was filed by 11 consumers through the law firm Bathaee Dunne. Plaintiffs seek unspecified monetary damages for alleged overcharges dating back to ChatGPT’s public launch in November 2022 and request injunctive relief to bar Microsoft from enforcing the allegedly anti-competitive limitations on OpenAI’s access to compute resources.
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Is OpenAI named as a defendant in the lawsuit?
No. OpenAI is not named as a defendant in the complaint. The suit targets Microsoft’s conduct and its alleged use of a secret, exclusive cloud deal to limit compute supply that customers rely on to run OpenAI services, including ChatGPT.
Has anything changed in OpenAI’s compute sourcing?
According to reporting by Reuters, some restrictions reportedly eased after OpenAI began purchasing compute from Google in June 2024. Plaintiffs acknowledge this development but argue the underlying risk remains because Microsoft could theoretically re-impose restrictions at any time.
Key Takeaways
- Alleged antitrust conduct: Plaintiffs contend Microsoft used an exclusive cloud arrangement to limit compute supply and disadvantage rivals.
- Financial context: Microsoft has invested more than $13 billion in OpenAI, and the lawsuit ties alleged overcharges to ChatGPT’s November 2022 public debut.
- Relief sought: Consumers request unspecified damages and a court order preventing Microsoft from enforcing the disputed restrictions.
Legal and market context
Microsoft has faced regulatory scrutiny in multiple jurisdictions. In the European Union, Microsoft agreed to commitments related to workplace software competition after prolonged antitrust discussions; those developments show regulators scrutinize bundling and market power in software markets. Reporting by Reuters and coverage in industry outlets such as Cryptopolitan provide background on the evolving competitive dynamics in cloud and generative AI markets. Bathaee Dunne represents the plaintiffs; Microsoft and OpenAI did not immediately comment on the filing.
Conclusion
The proposed class action frames the Microsoft–OpenAI relationship as a potential antitrust concern centered on access to compute resources and its effect on pricing and product quality. COINOTAG will monitor court filings and regulatory developments. If courts find the conduct unlawful, the decision could reshape how cloud contracts and AI partnerships are structured and priced—affecting enterprise and consumer AI services going forward.
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Source: https://en.coinotag.com/consumers-file-federal-antitrust-class-action-alleging-microsoft-may-have-restricted-openai-compute-raising-chatgpt-price-concerns/
