Elon Musk’s Legal Battle with OpenAI Continues Unabated

In a significant ruling, a federal judge based in Northern California has dismissed Elon Musk’s request to block OpenAI’s transformation from a non-profit organization into a for-profit entity. This latest development in Musk's ongoing legal battle was reported by Bloomberg.

U.S. District Court Judge Yvonne Gonzalez Rogers stated that Musk (a founding member of OpenAI) did not present sufficient evidence to warrant an injunction against the company's plans. While the request was rejected, Judge Rogers indicated that the court is ready to proceed with an expedited trial to evaluate whether the conversion is unlawful. She expressed concerns, stating that “irreparable harm is incurred when the public’s money is used to fund a nonprofit’s conversion into a for-profit,” emphasizing the legal and ethical implications of this transition.

This ruling adds another layer to Musk’s lawsuit against OpenAI and CEO Sam Altman, highlighting Musk’s contention that the organization is straying from its initial mission to democratize access to artificial intelligence technologies.

In a twist of events, just weeks prior to this ruling, Musk made an unsolicited bid to purchase OpenAI for a staggering $97.4 billion—a bid that the board of OpenAI swiftly and unanimously rejected. While this shocking move may not have succeeded, it certainly raises questions about potential complications OpenAI might face as it seeks to establish a more traditional corporate framework.

Klarna’s CEO Shares Insights on AI and the Future of SaaS

Sebastian Siemiatkowski, the founder and CEO of fintech startup Klarna, recently took to social media platform X to shed light on why his company transitioned from using Salesforce's renowned CRM system to developing its own homegrown AI solution.

In a candid post, Siemiatkowski clarified that he doesn’t foresee other firms following in Klarna’s footsteps regarding this shift. “I don’t think it is the end of Salesforce; might be the opposite,” he stated, emphasizing that every company’s needs are distinct.

Klarna first made headlines in September with the revelation that it had developed an in-house AI system—based on OpenAI's ChatGPT—that enabled the company to cut ties with Salesforce. This change led to the replacement of approximately 700 contract employees and annual savings of about $40 million.

Salesforce’s founder and CEO, Marc Benioff, expressed skepticism during a presentation, questioning how Klarna was managing customer data and compliance post-transition. Siemiatkowski humorously reflected on this moment, saying he was “tremendously embarrassed” when Benioff was confronted about the switch in choice during the event.

As Klarna gears up for a potential IPO next month, Siemiatkowski aims to clarify misconceptions related to data handling. He reassured stakeholders that Klarna isn’t transferring customer information directly to OpenAI but rather consolidating data from various SaaS platforms, including Salesforce, into an internally developed tech stack.

Using tools like Neo4j’s graph database, Klarna is building its own tech solution. “So no, we did not replace SaaS with an LLM,” Siemiatkowski clarified. “But we developed an internal tech stack, using Neo4j and other platforms, to start bringing data=knowledge together.”

Ultimately, he posits that while building bespoke software may not be a feasible path for most companies, a wave of consolidation in the SaaS industry is on the horizon, suggesting that many firms may instead choose to partner with existing providers.

Mobile World Congress 2025: Almost Here!

Attention, mobile enthusiasts! The Verge is heading to Barcelona, Spain, for the much-anticipated Mobile World Congress (MWC) 2025 and we couldn’t be more excited. Fresh off our experiences from CES, where we encountered a variety of gadgets from cutting-edge TVs to innovative gaming devices, we’re ready to dive into all things mobile.

MWC 2025 promises major announcements from global giants like Xiaomi and Nothing, with the latter set to unveil its new Nothing Phone 3A. Major players like Samsung and Google will also have a presence, and we’re particularly keen on any updates regarding Samsung’s much-anticipated Galaxy S25 Edge.

Not only will we be reporting on big-name releases, but we’ll also seek out more obscure products and unique finds on the show floor. Who could forget last year’s eye-catching displays, including Humane’s ambitious yet ill-fated AI Pin?

So be sure to bookmark this page for live updates, commentary, and first looks from the heart of Barcelona, where the future of mobile technology will unfold before our eyes.

Stay tuned as we cover every exciting announcement and reveal at MWC 2025!

This week in tech has proven to be nothing short of electrifying, showcasing the relentless innovation within the industry. Keep your eyes peeled for these unfolding stories, as they may just alter the landscape of technology and business as we know it!