Judge Denies Musk’s Bid to Block OpenAI from Going For-Profit
In a significant legal development, a federal judge in Northern California has turned down Elon Musk’s request for an injunction that aimed to pause OpenAI's transition to a for-profit entity. U.S. District Court Judge Yvonne Gonzalez Rogers ruled on Tuesday that Musk has not provided sufficient grounds for the sought injunction, allowing OpenAI to proceed with its planned changes.
Judge Rogers noted that the court is ready to expedite a trial regarding Musk's claims that OpenAI's shift to a profit-based model is unlawful. She stated, “Irreparable harm is incurred when the public’s money is used to fund a non-profit’s conversion into a for-profit.” This ruling adds another chapter to Musk’s ongoing lawsuit against OpenAI and its CEO, Sam Altman, where the allegations suggest that OpenAI has strayed from its original mission of democratizing AI research and resources.
Just weeks prior to this judgment, Musk made headlines by proposing an unsolicited offer to acquire OpenAI for a staggering $97.4 billion, an offer that the OpenAI board unanimously dismissed. This bid raises the prospect of future complications for OpenAI as it navigates its corporate transition.
Klarna's CEO Speaks Out on AI Replacing Salesforce
In a fresh statement via X, Sebastian Siemiatkowski, the CEO of fintech startup Klarna, reflected on his company's strategic pivot from Salesforce to an in-house AI system. Last year, Klarna discarded Salesforce's leading CRM product, opting for an AI-driven approach based on OpenAI's ChatGPT. Siemiatkowski emphasized the uniqueness of this approach but believes that most companies won't necessarily follow suit.
“I don’t think it is the end of Salesforce; might be the opposite,” he declared, addressing skepticism that erupted during an investor day event in September, where he unveiled how the transition resulted in a reduction of around 700 contract employees, saving the company nearly $40 million annually.
Salesforce’s founder, Marc Benioff, expressed doubts about Klarna’s data management and compliance, leading to an uncomfortable moment on stage. Siemiatkowski later clarified that Klarna has not transferred all its customer data to OpenAI but rather consolidated data from various SaaS platforms—Salesforce included—onto their proprietary system, utilizing Swedish company Neo4j’s graph database technology.
“This isn’t about replacing SaaS with an LLM,” he explained. “We built an internal tech stack to bring data and knowledge together.” As Klarna gears up for a potential public listing in the coming months, this internal restructuring garners significant attention.
In a broader discussion about enterprise strategy, Siemiatkowski voiced skepticism that many firms would invest the time to build custom AI solutions like Klarna's. However, he sees significant consolidation within the SaaS space, suggesting a trend towards fewer major players dominating the market.
MWC 2025: What to Expect from Barcelona
As The Verge prepares to embark on Mobile World Congress (MWC) 2025 in Barcelona, expectations are high for new mobile innovations and trends. Following a bustling CES, where the spotlight shone on everything from TVs to gaming gadgets, MWC promises to be concentrated on mobile technology and will cater to a global audience.
This year, fans can anticipate announcements from global giants like Xiaomi and Nothing, the latter of which is set to unveil the Nothing Phone 3A. Larger corporations such as Samsung and Google will also be present, although their specific announcements remain shrouded in mystery. Nevertheless, tech enthusiasts are eagerly waiting for updates on Samsung’s Galaxy S25 Edge, which could be revealed during the event.
The trade show often showcases a plethora of unique and quirky gadgets. Last year, notable exhibits included Humane’s controversial AI Pin and a stunning laptop with a transparent screen. Attendees should stay tuned to this page for the latest news, commentary, and sneak peeks from the MWC 2025 expo floor.
🔗 Bookmark this site for up-to-date coverage and live reactions!