Judge Denies Musk’s Bid to Block OpenAI’s Transition to Profit

In a significant legal ruling, a U.S. District Court judge has blocked Elon Musk's attempt to halt OpenAI’s intended shift to a for-profit model. This decision, delivered by Judge Yvonne Gonzalez Rogers of Northern California, came as no surprise to industry observers following Musk’s ongoing legal tussles with the AI juggernaut.

Judge Rogers determined that Musk had not provided sufficient evidence to justify an injunction against OpenAI's transition. However, she did acknowledge that the court is ready to expedite the trial on claims that OpenAI's conversion could be deemed unlawful. “Irreparable harm is incurred when the public’s money is used to fund a non-profit’s conversion into a for-profit,” she stated, emphasizing the public interest involved.

This ruling is the latest development in Musk’s controversial lawsuit, which criticizes OpenAI and CEO Sam Altman for straying from its original mission to ensure AI advancements are accessible to everyone. Just weeks before this ruling, Musk had made headlines with a staggering $97.4 billion acquisition bid for OpenAI—an offer that the board rejected unanimously, potentially complicating future endeavors for the company as it navigates its corporate transformation.

Klarna's CEO Doubts Others Will Follow Their AI Trailblazing Path

Sebastian Siemiatkowski, the CEO of Klarna, stirred the pot this week with a bold statement: he doesn't believe many companies will follow in Klarna's footsteps of ditching Salesforce for a custom-built AI system. Taking to X (formerly Twitter), he clarified that while Klarna's implementation has proven successful, the wider SaaS ecosystem isn't ready to wave goodbye to established players like Salesforce.

Klarna made waves recently with its homegrown AI system, reportedly allowing the fintech startup to replace around 700 full-time contract workers and yield substantial annual savings of nearly $40 million. But Siemiatkowski isn’t predicting a mass migration from Salesforce. “I don’t think it is the end of Salesforce; it might be the opposite,” he asserted.

This clarification came after Salesforce’s CEO Marc Benioff cheekily questioned how Klarna could manage compliance and customer data without the CRM giant. Siemiatkowski responded passionately, ensuring stakeholders that they weren't recklessly uploading data to OpenAI but instead consolidated data into a proprietary tech stack using tools like Neo4j, a Swedish graph database.

This incident underscores a longstanding question in enterprise software: is it better to build tech in-house or buy it? While Siemiatkowski argues that most companies aren’t inclined to develop their own AI solutions, he anticipates a significant consolidation in the SaaS market. “Will all companies do what Klarna does? I doubt it,” he concluded.

MWC 2025: What to Expect from the Mobile Tech Scene

Hold on to your smartphones, tech enthusiasts! The Verge is gearing up for an exciting trip to Barcelona for MWC 2025, a platform known for unveiling the latest and greatest in mobile technology. Hot on the heels of CES, which showcased everything from state-of-the-art TVs to innovative smart glasses, Mobile World Congress is where the spotlight will shine exclusively on mobile devices and solutions.

Expect significant announcements from heavyweight players like Xiaomi and Nothing, the latter of which is slated to unveil the highly anticipated Nothing Phone 3A. While big names like Samsung and Google will be in attendance, we await news on Samsung's upcoming Galaxy S25 Edge, which could create a buzz at the event.

Not to forget, MWC is also a treasure trove of quirky gadgets. Last year, we witnessed Humane's ill-fated AI Pin and several other fascinating innovations. As we prepare to cover the show floor, stay tuned for the latest updates, insightful commentary, and exclusive first looks at what's shaping the future of mobile technology.

Bookmark this page for all the thrilling highlights from Barcelona, where innovation meets practicality in the world of mobile tech!

Whether it's disputes over intellectual property in the AI space, pioneering shifts in corporate structure, or the hype surrounding the latest mobile innovations, it’s clear the tech landscape is as dynamic as ever. Stay engaged with the latest developments!