Elon Musk Loses Bid to Block OpenAI's Transition to For-Profit Model

In a notable legal decision, U.S. District Court Judge Yvonne Gonzalez Rogers has denied Elon Musk's motion for an injunction that aimed to prevent OpenAI from transforming into a profit-driven entity. The court ruled this past Tuesday, as reported by Bloomberg, stating that Musk failed to provide compelling evidence to warrant such a drastic action.

Judge Rogers did express willingness, however, to expedite a trial focused on the legality of OpenAI's conversion plan, emphasizing the potential "irreparable harm" inflicted when public funds are used to support a philanthropic organization making the leap to profitability. This ruling adds yet another chapter to Musk’s ongoing legal battle against OpenAI and its CEO, Sam Altman. Musk claims that the organization has strayed from its founding mission of democratizing artificial intelligence and ensuring its benefits reach everyone.

Just weeks prior to this ruling, Musk made headlines with an unsolicited bid of $97.4 billion to acquire OpenAI, although this proposal was unanimously rejected by OpenAI’s board. The board's decision to turn down Musk’s offer may lead to future complications for OpenAI as it moves towards establishing a more traditional corporate structure (Read more about OpenAI’s journey from nonprofit to for-profit here).

Klarna's CEO Weighs in on the Future of AI and CRM Systems

Sebastian Siemiatkowski, the CEO of Klarna, recently took to X to clarify his stance on the ongoing debate surrounding the use of AI versus traditional customer relationship management (CRM) systems, particularly in light of his company's 2024 shift away from Salesforce. Over the past year, Klarna has developed an in-house AI solution based on OpenAI's ChatGPT, which has enabled the company to drop its contract with Salesforce and streamline operations—replacing 700 full-time contract employees and estimating annual savings of about $40 million.

Despite this success, Siemiatkowski does not believe that other businesses will necessarily follow in Klarna's footsteps or that they should. On X, he noted, "I don’t think it is the end of Salesforce; might be the opposite."

The announcement of Klarna's AI-driven changes went viral, especially after Siemiatkowski detailed them during an investor day presentation. This sparked skepticism from Salesforce's founder, Marc Benioff, who questioned how Klarna could efficiently manage customer data and ensure compliance with regulatory requirements—leading Siemiatkowski to admit he felt "tremendously embarrassed" during the exchange.

In response to concerns, Siemiatkowski clarified that Klarna isn’t simply uploading customer data into OpenAI. Instead, they are consolidating data from multiple SaaS platforms—including Salesforce—onto their internal tech stack, utilizing tools such as Neo4j's graph database to enhance data knowledge integration.

He emphasized, "We did not replace SaaS with an LLM, and storing CRM data in an LLM would have its limitations." This perspective further ignites the ongoing "build versus buy" debate in the enterprise software world.

Siemiatkowski speculated on the future of SaaS, stating, "Will all companies do what Klarna does? I doubt it. On the contrary, much more likely is that we will see fewer SaaS companies consolidate the market." (For more insights on enterprise software trends, check out our guide here.)

MWC 2025: A Glimpse into the Future of Mobile Tech

The Verge is gearing up for a full-fledged coverage of Mobile World Congress 2025 in Barcelona, Spain—arguably the most exciting global event focused on mobile technology. Having just emerged from CES, where innovations ranged from smart glasses to gaming handhelds, MWC promises a dedicated look into the mobile world.

Major players like Xiaomi and Nothing are set to unveil exciting products, including the anticipated Nothing Phone 3A. Titans like Samsung and Google will also be on the scene, though details regarding any major announcements remain to be seen—particularly as we await information about Samsung’s much-speculated Galaxy S25 Edge.

MWC is also a platform for more niche and innovative tech. Last year's exhibition featured the ambitious (yet ultimately unsuccessful) AI Pin by Humane, along with other astonishing gadgets including a laptop boasting a transparent screen.

Be sure to bookmark this page for live updates, news, and hot takes from the show floor as we unravel the future of mobile innovation. (Catch all of our MWC coverage here.)

Let the countdown begin!