Judge Blocks Musk's Attempt to Halt OpenAI's For-Profit Move

In a significant development that has captured the attention of the tech community, a federal judge in Northern California has denied Elon Musk's attempt to block OpenAI's transition into a for-profit entity. According to Bloomberg, U.S. District Court Judge Yvonne Gonzalez Rogers ruled against Musk's motion for an injunction, stating that the evidence presented was insufficient for such a drastic measure.

While the injunction was denied, Judge Rogers hinted at a potential trial focused solely on Musk's lawsuit, which contends that OpenAI's shift away from its nonprofit roots is unlawful. Her remarks underscored a particular concern: "irreparable harm is incurred when the public’s money is used to fund a non-profit’s conversion into a for-profit." This comment foreshadows the complex legal and ethical debates that may unfold as OpenAI navigates its new corporate landscape.

This ruling marks yet another chapter in Musk's legal battle against OpenAI and its CEO, Sam Altman. Musk has been vocal about his belief that OpenAI has strayed from its foundational mission to democratize artificial intelligence. Just weeks before this ruling, Musk made headlines with a surprising $97.4 billion unsolicited takeover bid for the company—an offer unanimously rejected by OpenAI’s board. Nevertheless, the bid introduces new complications for OpenAI as it attempts to solidify its corporate structure and navigate the associated public scrutiny.

Klarna's CEO Offers Unique Insight on Its Salesforce Shift

Klarna's CEO, Sebastian Siemiatkowski, recently took to X (formerly Twitter) to discuss the fintech company’s strategic pivot away from Salesforce's renowned CRM platform toward an internally developed AI solution. This move, which has garnered considerable attention, was driven by Klarna's desire for a more customized system tailored to their operations.

Siemiatkowski emphasized a crucial point: while Klarna successfully built its own AI infrastructure based on OpenAI's ChatGPT, he does not foresee a broad industry trend toward similar transitions. In his post, he stated, “I don’t think it is the end of Salesforce; might be the opposite.” This indicates his recognition of Salesforce's enduring strength in the CRM market, even as Klarna adapts to new technological capabilities.

At an investor day, Siemiatkowski explained how the internal AI project enabled Klarna to replace 700 contract employees, resulting in annual savings of approximately $40 million. However, this shift has drawn some skepticism from Salesforce's founder and CEO, Marc Benioff, who publicly questioned how Klarna manages its customer data while complying with industry regulations.

In a bid for transparency, Siemiatkowski clarified that Klarna is not simply uploading customer data to OpenAI's models, but rather consolidating data from multiple platforms into their proprietary tech stack, highlighting the use of products like Swedish company Neo4j's graph database. He wrote, "So no, we did not replace SaaS with an LLM… we developed an internal tech stack… to start bringing data = knowledge together."

Siemiatkowski's stance suggests that while building custom solutions may not be feasible for most companies, the broader SaaS market is poised for consolidation. He concluded, "Much more likely is that we will see fewer SaaS consolidate the market, and they will do what we do and offer it to others."

What to Expect at MWC 2025: Mobile Innovations Await

The tech world is buzzing as The Verge prepares for the Mobile World Congress (MWC) 2025 in Barcelona, Spain—an event that promises an array of mobile devices and technological advancements. With the recent CES showcasing a variety of gadgets, MWC will pivot the focus primarily toward mobile innovations.

Companies like Xiaomi and Nothing are expected to make significant announcements, including the unveiling of the Nothing Phone 3A. The participation of major players like Samsung and Google adds weight to the event, although details on their newest offerings remain scarce. Anticipation builds around Samsung’s Galaxy S25 Edge and whether it will take the spotlight at the event.

The show floor at MWC is renowned for housing unique, sometimes quirky gadgets. Last year, for example, the much-discussed AI Pin from Humane, despite its underwhelming reception, was part of the experience.

Make sure to bookmark this page for real-time updates, commentary, and exclusive first looks at the new devices and trends emerging from MWC 2025. As the mobile landscape continues to evolve, our coverage will ensure you’re informed about the latest innovations in the industry.