Judge Denies Elon Musk's Motion to Halt OpenAI’s Transition to For-Profit
In a noteworthy ruling from the federal court in Northern California, U.S. District Court Judge Yvonne Gonzalez Rogers has turned down Elon Musk’s recent motion to block OpenAI’s transition into a for-profit entity, according to a report from Bloomberg.
Judge Rogers found Musk did not present sufficient evidence to warrant an injunction. However, she did mention the possibility of holding an expedited trial focused on the legality of OpenAI’s conversion plan, stating, “irreparable harm is incurred when the public’s money is used to fund a non-profit’s conversion into a for-profit.” This twist continues the ongoing legal drama between Musk and OpenAI, including its CEO Sam Altman, as they navigate claims of the organization diverging from its original non-profit mission of democratizing AI research.
Just weeks prior, Musk made headlines with an unsolicited takeover bid to acquire OpenAI for a staggering $97.4 billion. This bold offer was unanimously rejected by OpenAI’s board, but it undoubtedly adds complexity to the company’s plans to establish a conventional corporate structure moving forward.
Klarna CEO Weighs In: The Future of CRM in an AI World
Sebastian Siemiatkowski, the founder and CEO of the IPO-bound fintech company Klarna, offered fresh insights recently that challenge conventional wisdom in the CRM space. Taking to X (formerly Twitter), he shared the rationale behind Klarna's choice to switch from Salesforce to an internal AI system developed with OpenAI’s ChatGPT.
While Klarna’s decision to abandon Salesforce's flagship CRM product has become a trending topic, Siemiatkowski is adamant that his company’s path may not be a model many others should or will follow. “I don’t think it is the end of Salesforce; it might be the opposite,” he tweeted, hinting at a potential consolidation phase within the SaaS market.
The uproar began last month when Siemiatkowski revealed that Klarna’s in-house AI solution replaced 700 full-time contract employees, leading to significant annual savings of nearly $40 million. This move raised eyebrows, especially as Salesforce CEO Marc Benioff questioned how Klarna was managing customer data and compliance needs post-transition.
Clarifying his stance, Siemiatkowski reassured the public that Klarna is not simply offloading sensitive customer data onto OpenAI’s platform. Instead, he elaborated on how Klarna's project involved consolidating data from various SaaS platforms—including Salesforce—into their own internally developed tech stack, specifically citing Neo4j’s graph database as part of their infrastructure.
In a no-nonsense approach, he stated, “So no, we did not replace SaaS with an LLM,” emphasizing that while there are limits in storing CRM data in an LLM, Klarna is successfully leveraging its own AI to derive actionable insights from their accumulated knowledge.
As Klarna gears up for a public offering, Siemiatkowski concluded that broader SaaS industry consolidation is on the horizon, potentially leading to fewer players dominating the market while focusing on fortifying their respective positions.
MWC 2025: What to Expect from Mobile World Congress in Barcelona
This year, the Mobile World Congress (MWC) 2025 is set to take place in Barcelona, Spain, and tech enthusiasts are buzzing with anticipation. The Verge team, having just come off the CES 2025 hype, is eager to dive into this global showcase that promises to center around mobile innovations.
Expect to see exciting announcements from tech giants like Xiaomi and the quirky Nothing, who plan to unveil the Nothing Phone 3A. While larger firms like Samsung and Google are also making an appearance, details about their new releases remain under wraps. For instance, tech aficionados are still awaiting more information on the elusive Samsung Galaxy S25 Edge.
Beyond the big-name players, MWC often serves up hidden gems and unique tech items exclusive to the show floor. Last year offered a glimpse into innovative creations like Humane’s AI Pin—a product that mad waves, albeit for the wrong reasons.
As we gear up for Barcelona, make sure to bookmark our coverage for all the latest announcements, insightful commentary, and first looks at the next wave of mobile technology! Whether you’re a mobile fanatic or just keeping an eye on trends, MWC 2025 promises to be a highlight of the tech calendar.