AI users sue Microsoft in antitrust class action over OpenAI deal (www.reuters.com)

A proposed class action filed Oct. 13 in the Northern District of California accuses Microsoft of using an exclusive cloud-computing deal with OpenAI to restrict supply of the raw compute capacity needed to run ChatGPT, allegedly inflating subscription prices and degrading product quality. The complaint by 11 consumers says Microsoft’s investments (more than $13 billion to date) and early multi‑year Azure partnership effectively restrained competition while Microsoft prepared its own rivals (e.g., Copilot). Plaintiffs seek damages back to ChatGPT’s November 2022 launch and a court order barring Microsoft from reimposing such restrictions; OpenAI is not a defendant. Microsoft says the partnership fosters competition and responsible AI; the suit is Samuel Bryant et al v. Microsoft Corp, No. 3:25-cv-08733. For the AI/ML community this raises core questions about access to large-scale compute — the scarce, high-cost resource that powers LLM training and inference — and how cloud-provider deals can shape pricing, model performance, and vendor lock‑in. If proven, the allegations highlight risks from vertical integration between cloud infrastructure and platform providers and could prompt regulators or courts to limit exclusive compute arrangements, encourage multi‑cloud sourcing (as OpenAI began buying Google compute in June), and influence how future model deployments are governed and priced. The case could set important precedents for competition and infrastructure access in the era of generative AI.