Judge Dismisses Musk’s Move to Halt OpenAI's Shift to For-Profit
In a move that has garnered significant attention, a federal judge in Northern California has denied Elon Musk’s request for an injunction aimed at stopping OpenAI's planned transition into a for-profit entity, as reported by Bloomberg.
U.S. District Court Judge Yvonne Gonzalez Rogers determined that Musk did not present adequate evidence to justify such an injunction. She did, however, indicate that the court is ready to expedite a trial focused on Musk’s claim that the conversion plan is illegal, adding that “irreparable harm is incurred when the public’s money is used to fund a non-profit’s conversion into a for-profit.”
Musk's legal battle against OpenAI, which accuses the organization and its CEO Sam Altman of straying from its original mission of making AI accessible to all, continues to evolve. Notably, just weeks ago, Musk made headlines by proposing a massive $97.4 billion unsolicited bid to acquire OpenAI, which was swiftly declined by the company's board. This unexpected move may complicate matters for OpenAI as it navigates its restructuring into a conventional corporate framework.
Klarna's CEO Raises Doubt on Salesforce Replacement
Sebastian Siemiatkowski, founder and CEO of the fintech giant Klarna, took to X (formerly Twitter) to share his skepticism regarding other companies potentially replacing Salesforce with AI. This comes in light of the announcement that Klarna had developed an in-house AI system leveraging OpenAI’s ChatGPT, which allowed the company to discontinue its relationship with Salesforce’s CRM product.
In a candid message, Siemiatkowski said, “I don’t think it is the end of Salesforce; it might be the opposite,” illustrating a belief that while Klarna has successfully transitioned away from the tech giant, it doesn’t spell doom for Salesforce in the broader market.
The news of Klarna's pivot went viral last September during an investor day, where Siemiatkowski detailed the system's impact—eliminating 700 full-time contractor roles and saving approximately $40 million annually. Salesforce co-founder Marc Benioff expressed doubts on how Klarna handles customer data while maintaining compliance, which only fueled the conversation further.
As Klarna prepares for a potential public listing, Siemiatkowski clarified that his firm isn’t simply dumping all customer data into OpenAI. Instead, Klarna has taken data from various SaaS platforms it previously utilized and migrated it to their own tech ecosystem, citing the Swedish company Neo4j’s graph database among their tools.
“So, no, we did not replace SaaS with an LLM. Storing CRM data in an LLM comes with its limitations. We developed an internal tech stack that allows data and knowledge to converge,” he noted, emphasizing the importance of thoughtful data management.
In a broader industry perspective, Siemiatkowski speculated that while companies might not follow Klarna’s lead in developing bespoke AI solutions, the Software as a Service (SaaS) landscape may witness substantial consolidation. “Will all companies do what Klarna does? I highly doubt it. More likely, we’ll see fewer SaaS firms consolidating the market and offering what we do to others,” he remarked.
Gear Up for MWC 2025: Mobile Innovations Await
Attention, tech enthusiasts! The Verge is set to touch down in Barcelona, Spain, for Mobile World Congress (MWC) 2025. Fresh off the heels of CES, which showcased an array of innovative gadgets from TVs to gaming handhelds, MWC promises a laser focus on mobile technologies.
Expect to see unveilings from cutting-edge companies like Xiaomi and Nothing, with the latter making a splash by launching the Nothing Phone 3A. Major players such as Samsung and Google will also be present, although it remains uncertain whether they’ll reveal exciting new products amid anticipation for updates on Samsung's Galaxy S25 Edge.
In addition to prominent announcements, the event will spotlight quirky and fun tech only available at the show floor. Just last year, MWC saw the debut of Humane’s AI Pin and a laptop sporting a transparent screen—definitely memorable highlights of the event.
Keep this page bookmarked as we will provide all the latest news, insights, and first looks from MWC 2025, ensuring you don’t miss a beat in the ever-evolving mobile landscape.
Stay tuned!