"ChatGPT prices were inflated since the service's inception, with price levels reaching an eye-popping 100 to 200 times competitors' prices on a per-token basis amidst a February 2025 price war. A secretive agreement struck between OpenAI and Microsoft early in OpenAI's development allowed Microsoft to control the supply of compute to its horizontal competitor's products. It used an exclusivity clause to restrict OpenAI's product output, and to impose a price-or, conversely, output and quality-floor on its competitor OpenAI's ChatGPT products."
"while we are still reviewing the details of the complaint, we believe that our OpenAI partnership promotes competition, innovation, and responsible AI development."
"It taps into a genuine policy concern about the concentration of power in AI infrastructure and pricing, but antitrust cases like this are hard to win,"
Plaintiffs allege Microsoft used a secret agreement with OpenAI to control compute supply and restrict ChatGPT output via an exclusivity clause, enabling Microsoft to impose a price or output/quality floor. The complaint claims ChatGPT per-token prices reached 100–200 times competitors' levels during a February 2025 price war and seeks treble damages for overcharged businesses. Microsoft declined to address specifics, stating the OpenAI partnership promotes competition, innovation, and responsible AI. Industry observers doubt major impact given many AI providers, and a policy expert said the case raises concentration concerns but antitrust suits are difficult to win.
Read at Computerworld
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