Judge Denies Musk's Attempt to Block OpenAI's Shift to Profitability
In a significant legal development, a federal judge in Northern California has ruled against Elon Musk's request for an injunction to prevent OpenAI from transitioning to a for-profit model. U.S. District Court Judge Yvonne Gonzalez Rogers dismissed Musk's motion, citing a lack of adequate evidence to justify such an injunction. According to her ruling, “irreparable harm is incurred when the public’s money is used to fund a non-profit’s conversion into a for-profit,” indicating that the court is open to an expedited trial concerning the legality of OpenAI’s transition plan.
This ruling represents a new chapter in Musk's ongoing legal battle against OpenAI, where he alleges that the company has deviated from its original mission of making AI research accessible to all. Just a few weeks prior, Musk made headlines with an unsolicited bid to acquire OpenAI for a staggering $97.4 billion, an offer that was promptly rejected by OpenAI’s board. Despite this rejection, it raises the question of what the future holds for Musk and OpenAI’s relationship amidst the company's efforts to adopt a more traditional corporate structure.
Klarna's CEO Shares Thoughts on AI Replacing Salesforce
As the fintech world buzzes with the promise of AI-driven solutions, Klarna's CEO Sebastian Siemiatkowski has shared his views on the subject. Taking to social platform X, Siemiatkowski discussed Klarna's decision to ditch Salesforce’s CRM product in favor of a custom AI system developed in-house. While he celebrated this change, he doubted that other companies would necessarily follow suit, suggesting that "I don’t think it is the end of Salesforce; it might be the opposite."
This shift went viral in September when Siemiatkowski elaborated on the project during an investor day, revealing that the move allowed Klarna to eliminate 700 full-time contract jobs and save around $40 million annually. However, Salesforce founder Marc Benioff expressed skepticism, questioning how Klarna manages its customer data while ensuring compliance needs are met. Siemiatkowski admitted feeling “tremendously embarrassed” when Benioff raised this topic during a public event.
As Klarna gears up for a potential IPO, Siemiatkowski wanted to clarify: the project didn't just replace an external solution with AI but centralized data from various platforms, including Salesforce, into its proprietary tech stack, using tools like Neo4j's graph database for enhanced data management.
He stressed, "So no, we did not replace SaaS with an LLM… we developed an internal tech stack to start bringing data = knowledge together," further remarking on the need for consolidation within the SaaS industry. Instead of seeing a plethora of companies adopting a similar path to Klarna, he predicts a trend toward the emergence of fewer, stronger SaaS players offering their AI solutions to the market.
MWC 2025: Tech Enthusiasts Anticipate Mobile Innovations in Barcelona
Anticipation builds as The Verge prepares to travel to Barcelona, Spain, for Mobile World Congress (MWC) 2025. Fresh from the excitement of CES, which showcased an array of cutting-edge gadgets from TVs to gaming handhelds, MWC promises to delve deep into the realm of mobile technology—a global hub that highlights innovations, many of which may not reach the U.S. market.
Industry watchers can expect announcements from a host of companies, including Xiaomi and Nothing, the latter gearing up to unveil the Nothing Phone 3A. Even bigger names like Samsung and Google will be present, though details remain scarce on what to expect. The tech world awaits more information regarding Samsung’s Galaxy S25 Edge, which may finally make its debut during the event.
Alongside high-profile launches, niche innovations from lesser-known companies are often the stars of the show. Last year, attendees experienced the quirky AI Pin from Humane, along with other surprises like a laptop boasting a transparent screen.
Be sure to bookmark this space for live updates, first looks, and in-depth commentary from the bustling show floor at MWC 2025. Stay tuned for what promises to be an exciting showcase of the future of mobile technology!