Microsoft Corporation (NASDAQ:MSFT) is facing a lawsuit from consumers for allegedly inflating prices for generative AI under a secret agreement with OpenAI. The proposed class action claims that Microsoft restricted the supply of computational resources for the AI chatbot ChatGPT, impacting product quality and driving up subscription prices.

The lawsuit alleges that Microsoft’s deal with OpenAI violated antitrust laws by restraining competition and artificially inflating prices. While the alleged restraints on OpenAI have eased, Microsoft is accused of using the agreement to capitalize on OpenAI’s success while developing its own rival products like Copilot.

Microsoft has invested over $13 billion in OpenAI and believes the partnership promotes innovation, competition, and responsible AI development. The company is reviewing the lawsuit but maintains its commitment to advancing AI technology responsibly and competitively.

Read more at Yahoo Finance: Microsoft Corporation (MSFT) Sued by Consumers in Antitrust Class Action over OpenAI Deal