Musk's Legal Setback: Judge Denies Injunction Against OpenAI's For-Profit Shift

In a significant development, a federal judge in Northern California has dismissed Elon Musk's attempt to stop OpenAI's transition into a for-profit organization. This ruling from U.S. District Court Judge Yvonne Gonzalez Rogers emerged during a hearing on Tuesday, marking yet another phase in Musk's ongoing legal battle with the AI entity.

Judge Rogers indicated that Musk did not present sufficient evidence to warrant an injunction. However, she emphasized the court's willingness to expedite proceedings regarding the legality of OpenAI's conversion plan, noting the potential "irreparable harm" posed by the use of public funds to aid a non-profit's switch to a for-profit model. This assertion echoes growing concerns among critics, including Musk, who believes OpenAI is straying from its original mission to ensure broader access to the benefits of AI technology.

This legal clash isn't Musk's only recent challenge regarding OpenAI. Just weeks ago, he made headlines with a bold unsolicited takeover bid to acquire the company for a staggering $97.4 billion—a proposal that OpenAI's board swiftly rejected. Musk’s actions likely foreshadow a tumultuous period for OpenAI as it pursues a more standard corporate structure, potentially laden with complex implications for the tech community.

Klarna CEO Casts Doubt on AI Replacing Salesforce

In a recent discussion on social media platform X, Klarna's CEO Sebastian Siemiatkowski raised eyebrows by expressing skepticism that other companies would be able—or should be able—to replace Salesforce’s renowned CRM platform with artificial intelligence tools. This statement comes on the heels of Klarna's successful pivot to using a custom-built AI system, based on OpenAI’s ChatGPT, which allowed the fintech firm to part ways with Salesforce after a year-long relationship.

While Siemiatkowski acknowledges that Klarna has reaped significant benefits—saving around $40 million annually and reducing its workforce by 700 contract employees—he maintains that his approach is not necessarily a blueprint for other players in the industry. “I don’t think it is the end of Salesforce; might be the opposite,” he asserted, hinting at potential market consolidation rather than widespread emulations of Klarna's model.

He also calmed the waters after Salesforce founder Marc Benioff publicly questioned Klarna's capability to manage customer data and compliance efficiently. Siemiatkowski clarified that Klarna didn’t merely upload customer data to OpenAI, but rather consolidated existing data from various software-as-a-service systems into its own tech stack—leveraging tools like Neo4j for an internal knowledge database.

As Klarna prepares for a potential public offering next month, Siemiatkowski remains confident in the viability of traditional software solutions, advocating for a blend of building and buying in the evolving SaaS landscape.

Previewing MWC 2025: Gadgets, Phones, and More from Barcelona

Mark your calendars! The Verge is gearing up for the much-anticipated Mobile World Congress (MWC) 2025 in Barcelona, following a flurry of exciting showcases at CES. This year’s event promises a spotlight on the latest in mobile technology, with emerging players like Xiaomi unveiling the Nothing Phone 3A.

Industry giants including Samsung and Google are also expected to make an appearance, though specifics about new product launches are yet to be confirmed. Fans of Samsung will be keenly watching for news regarding the Galaxy S25 Edge—a smartphone generating buzz in the tech community.

While the marquee announcements will be of great interest, the event also offers a stage for more obscure tech innovations. Last year, attendees were introduced to unique gadgets like Humane's AI Pin and other intriguing devices that sparked conversation and curiosity.

For all the insights, news, and exclusive previews as they unfold on the show floor, be sure to bookmark this page!

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