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A new class-action lawsuit has accused Microsoft of manipulating AI supply to inflate ChatGPT prices. The suit, filed in the U.S. District Court for the Northern District of California, claims that Microsoft used its cloud dominance to restrict OpenAI’s access to computing resources. This restriction allegedly led to overpricing for ChatGPT subscriptions and poor service quality for users.

The lawsuit comes from eleven ChatGPT Plus subscribers who argue they were overcharged from November 2022 to February 2025. It claims that Microsoft’s exclusive control over OpenAI’s computing power artificially raised subscription fees. They also argue that the service quality deteriorated due to limited computing availability.

Plaintiffs define a new market, the Consumer Generative AI Market, which includes products such as ChatGPT Plus and other AI tools. They argue Microsoft has abused its position in the AI space by controlling OpenAI’s compute supply. This has allowed the company to compete unfairly in the AI sector, especially as it also develops its own generative AI products.

Microsoft’s Exclusive Deal with OpenAI Under Scrutiny

In 2019, Microsoft entered into a deal that gave it exclusive rights to provide cloud services for OpenAI’s models. The lawsuit claims this deal allowed Microsoft to limit OpenAI’s access to computational resources needed for its AI products. As a result, Microsoft allegedly controlled a crucial part of its competitor’s supply chain while advancing its own AI ambitions.

The plaintiffs allege that Microsoft’s actions led to a significant price disparity in the market. According to the complaint, ChatGPT Plus subscriptions were priced up to 200 times higher than those of competitors. They argue that these inflated prices were a direct result of Microsoft’s actions, which hindered OpenAI’s ability to innovate and improve services.

According to legal experts, a critical piece of evidence would be the exclusive agreement itself. If the document reveals that Microsoft had control over OpenAI’s compute supply, it could strengthen the plaintiffs’ case. Internal emails or records could also provide crucial insight into Microsoft’s actions and their effects on AI pricing.

Lawsuit Claims Microsoft Stifled OpenAI’s Service

In June 2025, OpenAI ended its exclusivity deal with Microsoft and began purchasing compute services from Google Cloud. Following this change, ChatGPT’s token prices reportedly dropped by 80 percent within weeks. This shift marks a significant change in the AI landscape, showing that competition can directly impact pricing.

Plaintiffs claim that the previous situation, where Microsoft controlled OpenAI’s cloud services, led to poor quality and delayed updates. The lawsuit argues that, prior to this shift, users experienced slow response times and unreleased innovations. With the end of the exclusivity agreement, OpenAI’s ability to provide better service was restored.

Legal experts suggest that if Microsoft still retains the ability to restrict OpenAI’s compute purchases, the case could hold further weight. Plaintiffs are seeking monetary damages and a permanent injunction to prevent such exclusive agreements in the future. The class-action suit could lead to significant changes in the way AI companies operate and compete.

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