Microsoft is facing a new class action lawsuit from consumers who claim the tech giant illegally inflated prices for artificial intelligence services through its exclusive partnership with ChatGPT maker OpenAI.
The complaint, filed in federal court in San Francisco, accuses Microsoft of using its cloud computing deal with OpenAI to restrict access to the processing power needed to run ChatGPT. The alleged restraint, the plaintiffs say, violated U.S. antitrust law by reducing competition and driving up subscription costs for millions of AI users.
Microsoft has invested more than $13 billion in OpenAI since 2019, when it announced the first phase of a long-term collaboration to develop supercomputing systems on its Azure cloud platform. OpenAI, originally founded as a nonprofit in 2015, has since restructured into a for-profit company.
According to Reuters, the plaintiffs argue that Microsoft’s early agreement allowed it to control OpenAI’s resources, profit from its growth, and prepare rival products such as its Copilot AI platform. They also claim that ChatGPT’s prices rose sharply compared to competitors during a recent industry price war.
The lawsuit describes Microsoft’s influence over OpenAI as “a sword of Damocles” hanging over one of its biggest competitors. Although OpenAI began purchasing computing power from Google in June, the plaintiffs say the restrictive terms of the original deal still linger.
Microsoft said it was reviewing the case but defended its partnership, stating that it “promotes competition, innovation, and responsible AI development.” OpenAI, which is not named as a defendant, declined to comment.
The plaintiffs seek damages for alleged overcharges dating back to ChatGPT’s launch in November 2022, and a court order preventing Microsoft from reimposing the disputed restrictions.
![Terry Rozier pleads not guilty to sports betting charges By Reuters December 8, 20257:45 PM GMT-4Updated 3 hours ago Item 1 of 3 Terry Rozier, a guard with the NBA's Miami Heat, departs the Brooklyn Federal courthouse, after entering a plea in a criminal case alleging he shared non-public information with sports bettors ahead of games, in Brooklyn, New York, U.S., December 8, 2025. REUTERS/Eduardo Munoz [1/3]Terry Rozier, a guard with the NBA's Miami Heat, departs the Brooklyn Federal courthouse, after entering a plea in a criminal case alleging he shared non-public information with sports bettors ahead of games, in Brooklyn, New York, U.S., December 8, 2025. REUTERS/Eduardo Munoz Purchase Licensing Rights, opens new tab December 8 - Facing federal wire fraud and money laundering conspiracy charges for his alleged role in an illegal sports gambling scheme, Miami Heat guard Terry Rozier pleaded not guilty in federal court Monday in New York. Rozier, 31, was released on a $3 million bond. Rozier's co-defendant, Deniro Laster, also appeared in court and pleaded not guilty. He was released on $50,000 bond. He and Rozier were arrested in October in connection with a federal investigation into illicit gambling. Advertisement · Scroll to continue In an indictment from the U.S. Justice Department, Rozier was accused of tipping off Laster that he planned to leave a game for the Charlotte Hornets game early by feigning an injury. Laster and other conspirators then used that knowledge to "place and direct more than $200,000 in wagers predicting Rozier's ‘under' statistics (i.e., that Rozier would underperform)." The NBA had previously investigated suspicious prop bets placed on Rozier's unders in 2023 but did not find evidence he had violated league rules. The league placed Rozier on leave following the indictment and his arrest. An investigation into Rozier has been underway since a March 23, 2023, game when Rozier played for the Hornets. Sportsbooks reported unusual betting activities on prop bets -- all on the under -- in a game Rozier left after 10 minutes, claiming a foot injury. Advertisement · Scroll to continue The indictment alleges Rozier made it known to associates that he would depart the game early, and more than $200,000 was wagered on the under, with a share of the winnings given to Rozier. With the next status update on the case set for March 3, Rozier's lawyer, Jim Trusty, told reporters he plans to file a motion for dismissal Tuesday. Evan Corcoran, Laster's lawyer, said he would likely do the same for his client. Trusty went on to say that he will meet with the NBA in an arbitration hearing on Dec. 17, per The Athletic, to contest that Rozier's leave is unpaid. The guard was placed on unpaid leave by the league one week after he was arrested, which caused the National Basketball Players Association to file a grievance with the league. Rozier entered the league as a first-round draft pick of the Boston Celtics in 2015. He is playing this season on the final year of a four-year, $96.3 million deal he signed with the Hornets and has $160.4 million in career earnings, according to Spotrac.](https://arbitrationmonitor.com/wp-content/uploads/terry-rozier-sports-150x150.avif)