Microsoft Wins Dismissal of Antitrust Claims Over ChatGPT Partnership

A US federal judge has dismissed antitrust claims against Microsoft related to its partnership with OpenAI, citing that the plaintiffs did not properly allege an antitrust injury.

The lawsuit claimed that Microsoft was restricting OpenAI's product output and imposing a price floor on ChatGPT products. However, District Judge P Casey Pitts argued that the plaintiffs were not competing compute providers foreclosed from selling compute to OpenAI or consumer generative AI providers foreclosed from accessing necessary compute capacity.

Pitts granted dismissal with leave to amend, stating that 'a contractual constraint inhibiting one competitor's ability to compete does not amount to an antitrust injury absent a broader harm to the market's ability to provide consumers a full range of options.'