Microsoft has initiated legal proceedings against an unnamed group accused of exploiting its Azure OpenAI Service by creating tools to bypass security measures. The lawsuit claims the defendants used stolen API keys to generate harmful content, violating several federal laws. Microsoft discovered the breach in July 2024 and is seeking damages and injunctive relief. The company has implemented new safety measures to counteract the unauthorized access. The complaint reveals a systematic pattern of API key theft, leading to a 'hacking-as-a-service' scheme facilitated by the defendants.