Microsoft Accused of Artificially Inflating ChatGPT Prices

A class-action lawsuit has been filed in the United States accusing Microsoft of abusing its dominance in cloud computing to artificially restrict OpenAI’s computing resources, allegedly keeping ChatGPT prices artificially high for nearly three years.

The lawsuit, filed in federal court in San Francisco, claims Microsoft used its Azure cloud dominance to limit OpenAI’s access to the computational power required to operate ChatGPT.

According to plaintiffs, during the February 2025 “price war,” ChatGPT token prices were 100–200 times higher than competitors due to monopolization practices.

The case centers on a 2019 exclusive agreement granting Microsoft exclusive rights to supply Azure computing for OpenAI’s commercial models, effectively giving it control over a competitor’s supply chain while developing its own AI products such as Copilot.

Plaintiffs define a separate consumer generative AI market including ChatGPT Plus, Claude Pro, Gemini Advanced, and DeepSeek Chat.

Microsoft reportedly owns 49% of OpenAI’s profit unit and receives 20% of paid product revenues, allegedly allowing it to “profit twice” — first from selling computing power and then from the product it limits.

Key evidence cited is that after OpenAI began purchasing computing from Google Cloud in June 2025, ChatGPT token prices dropped by 80% within weeks.

Legal expert Navodaya Singh Rajpurohit noted that the exclusivity agreement itself could be the strongest evidence if it demonstrates Microsoft’s control over OpenAI’s computing resources.

Plaintiffs are seeking damages and a court order prohibiting exclusive agreements between Microsoft and OpenAI.

The lawsuit comes amid restructuring of the partnership. SoftBank is reportedly negotiating a potential $25 billion investment in OpenAI, exceeding Microsoft’s current $13 billion stake. Meanwhile, Microsoft agreed to end its exclusive cloud provider status under the Stargate project.

OpenAI recently reached a $500 billion valuation, becoming the most valuable private company in the world.