Judge Declines Musk’s Motion to Halt OpenAI’s For-Profit Shift: A Legal Rollercoaster

In a significant ruling from a federal court in Northern California, Elon Musk's motion to block OpenAI's transition to a for-profit model has been denied, as reported by Bloomberg. The motion sought an injunction to stop OpenAI's conversion but was dismissed by U.S. District Court Judge Yvonne Gonzalez Rogers due to Musk’s inability to provide sufficient evidence in support of his claim.

Judge Rogers noted that “irreparable harm is incurred when the public’s money is used to fund a non-profit’s conversion into a for-profit.” This highlights the potential implications of OpenAI's restructuring, which Musk argues strays from the organization's original mission to democratize AI technology. The court is now prepared to expedite the trial focusing on whether OpenAI's shift is indeed unlawful.

This debacle adds another twist to Musk’s ongoing legal battle not just with OpenAI, but also with its CEO, Sam Altman. The lawsuit positions Musk as a staunch defender of ethical AI use, citing a betrayal of OpenAI's non-profit origins. Amidst these turbulent waters, Musk recently made waves by proposing a takeover bid for OpenAI at a jaw-dropping price of $97.4 billion. However, this bid was unanimously rejected by OpenAI's board, potentially paving the way for future challenges as the company pivots to a more traditional corporate structure.

Klarna’s CEO Shares Insight on Why Building AI is Not the Future for Everyone

Sebastian Siemiatkowski, CEO and founder of the fintech company Klarna, took to X (formerly Twitter) to clarify why his company shifted from Salesforce to an in-house AI system. In an unexpected twist, he asserted that while his company has successfully developed its own advanced AI solutions, he doesn't foresee a widespread movement toward custom-built systems among other businesses.

Siemiatkowski's announcement that Klarna replaced Salesforce’s CRM with its proprietary AI sparked discussion across social media, following his remarks at an investor event where he revealed substantial savings of around $40 million annually and a reduction in workforce by 700 full-time contractors.

Salesforce’s founder and CEO, Marc Benioff, raised eyebrows over the decision, questioning the security and efficacy of Klarna’s data management. Responding to these concerns, Siemiatkowski explained that Klarna is not reckless with customer data; instead, the company consolidated information from multiple SaaS systems, including Salesforce, into its custom technology stack — an approach that utilizes Neo4j’s graph database technology.

“So no, we did not replace SaaS with an LLM (Large Language Model),” Siemiatkowski clarified. “We allowed our internal AI to utilize knowledge from this consolidated data.” This ongoing evolution reignites a classic debate in enterprise software: should companies build their own systems or purchase established solutions?

Despite his firm’s example, Siemiatkowski maintains that many firms will likely prefer the stability offered by established SaaS providers. He predicts that the SaaS landscape will continue its trend of consolidation, suggesting a shift where fewer players dominate the market, offering services similar to Klarna’s model.

MWC 2025: What to Look Forward to at the Annual Mobile Conference

The countdown to Mobile World Congress 2025 (MWC) has begun, and The Verge is gearing up to cover the latest innovations from this tech mecca in Barcelona. Having come fresh off the exhilarating CES event, where gadgets of all sorts captured our imaginations, we now turn our eyes to the mobile-centered marvels that MWC has in store.

Major announcements are anticipated from globally recognized brands like Xiaomi, which is set to unveil the much-anticipated Nothing Phone 3A, alongside other significant players such as Samsung and Google — the latter still keeping details about the Galaxy S25 Edge close to their chest.

Expect the unexpected as we explore the floor for niche products that might not hit the U.S. market but are bound to intrigue tech enthusiasts worldwide. Last year, we encountered the ill-fated AI Pin by Humane and a laptop boasting a transparent screen.

Make sure to bookmark this page for all the live updates, insights, and exclusive first looks that promise to come out of MWC 2025. This event is more than just a showcase; it’s a glimpse of the future of mobile technology — and we’re here to witness it all.

Stay tuned!