Summary
Computing UK’s detailed coverage of the US class action alleging Microsoft used its $13B+ investment in OpenAI and exclusive Azure agreement to create artificial compute scarcity, inflating ChatGPT prices up to 200x competitors. Also reports a parallel UK £2B competition claim by lawyer Maria Luisa Stasi over Microsoft’s Windows Server cloud pricing.
Key Points
- Filed in US District Court for the Northern District of California. Plaintiffs are ChatGPT Plus subscribers.
- $13B+ Microsoft investment in OpenAI since 2019 gave Microsoft “effective control over the startup’s compute supply.”
- Exclusivity clause required OpenAI to use Azure for all compute needs.
- Allegation: Microsoft deliberately constrained Azure compute during peak demand to force OpenAI price hikes.
- API token prices alleged inflated “as much as 200 times” competitors.
- DeepSeek disruption (early 2025): DeepSeek launched a powerful low-cost ChatGPT competitor; cut prices 75% by February; OpenAI remained 100x+ higher due to Azure constraints.
- Mid-2025: OpenAI reportedly secured Google Cloud access; prices then dropped 80% and delayed features launched.
- Suit seeks treble damages, restitution, fees, and a permanent injunction plus court-ordered dismantling of Microsoft’s control over OpenAI compute infrastructure.
- UK parallel: Maria Luisa Stasi filing a £2B claim at UK Competition Appeal Tribunal over Microsoft Windows Server overcharges on Google / AWS / Alibaba cloud.
Newsletter Angles
- Compute infrastructure as the new antitrust chokepoint. The case frames Microsoft as a “gatekeeper of AI compute infrastructure” — the structural power isn’t the model, it’s the cloud. Direct connection to Chokepoint Control and Platform Antitrust.
- DeepSeek as regulatory proof-of-concept. The 80% price drop when Azure exclusivity loosened is the clearest evidence that Microsoft’s grip was the binding constraint, not any scarcity of actual compute.
- Transatlantic antitrust coordination. The UK parallel claim signals Microsoft faces coordinated cloud-pricing pressure in both jurisdictions.
- Ties directly into Justin’s AI-pricing / dynamic-pricing arc: this is dynamic pricing at the infrastructure layer, dictated by exclusive deals rather than real market signals.
Entities Mentioned
- Microsoft — defendant; accused of artificial compute scarcity
- OpenAI — counterparty; reportedly constrained by Azure exclusivity until Google Cloud access in mid-2025
- DeepSeek — Chinese competitor whose price cuts exposed the exclusivity-driven pricing
- Maria Luisa Stasi — UK competition lawyer pursuing £2B parallel claim
Concepts Mentioned
- Platform Antitrust — core legal frame
- Chokepoint Control — compute as the chokepoint
- Dynamic Pricing AI — token pricing as the alleged harm
- Tech-State Conflict
Quotes
Microsoft’s deep financial and infrastructural entanglement with OpenAI — culminating in more than $13 billion in investments since 2019 — gave it effective control over the startup’s compute supply.
OpenAI’s API tokens were inflated by “as much as 200 times” compared with competitors.
If the court certifies the class, the case could represent one of the most consequential antitrust challenges in the history of AI.
Notes
Solid reporting tier — Computing is a UK tech trade publication. This piece is the most detailed of the three Microsoft-antitrust files in this ingest (PYMNTS is thin; Medianama covered earlier in Microsoft Antitrust Lawsuit — Secret Deal with OpenAI and Artificial Scarcity). The UK £2B parallel claim is unique to this source. Adds useful detail on the relief sought (treble damages + dismantling order).