Judge Rejects Musk’s Bid to Block OpenAI’s For-Profit Move

In a significant legal move, a federal judge in Northern California has denied Elon Musk’s request for an injunction to stop OpenAI's transformation into a for-profit entity, as reported by Bloomberg.

Judge Yvonne Gonzalez Rogers ruled on Tuesday that Musk could not substantiate his claim with sufficient evidence for such an injunction. However, she remarked that the court is ready to expedite a trial focused specifically on whether OpenAI's shift to a for-profit status is illegal. “Irreparable harm is incurred when the public’s money is used to fund a non-profit’s conversion into a for-profit,” she noted, emphasizing the potential risks involved.

This ruling is the latest development in Musk's ongoing legal battle against OpenAI and its CEO, Sam Altman. Musk's lawsuit asserts that OpenAI has strayed from its original non-profit mission, which aimed to democratize AI advancement for the broader public.

In a twist, Musk recently submitted an unsolicited takeover offer for OpenAI valued at $97.4 billion—an offer that was unanimously turned down by OpenAI's board. While this bold proposal has been rejected, it could pose challenges for OpenAI as it navigates its shift to a more traditional corporate framework as it faces backlash from Musk’s legal pursuits.

Klarna CEO Doubts Salesforce Will Be Replaced by AI

Sebastian Siemiatkowski, the founder and CEO of the fintech giant Klarna, is making headlines once again, particularly for his views on Salesforce. Recently, he took to X (formerly Twitter) to clarify his stance following Klarna’s decision to develop an internal AI system that ultimately led the company to part ways with Salesforce’s widely used CRM product.

Despite the viral nature of Klarna's shift away from Salesforce—a move that saved the company approximately $40 million annually and led to the replacement of around 700 full-time contract employees—Siemiatkowski is skeptical that other companies will follow suit. “I don’t think it is the end of Salesforce; might be the opposite,” he expressed, suggesting that rather than a mass exodus from Salesforce, the company might see a consolidation in the SaaS market instead.

During Klarna’s recent investor day, Siemiatkowski showcased how the switch to an AI-driven system built on OpenAI's ChatGPT technology revolutionized their operations. However, he clarified that any companies considering a similar transition should be cautious. As a fintech firm operating in a regulated industry, securing customer data remains paramount, which led Klarna to consolidate data from various SaaS systems, including Salesforce, into its proprietary tech stack rather than simply uploading all customer information to OpenAI.

He emphasized, “It’s not that we replaced SaaS with a language model (LLM); CRM data storage in an LLM has its limitations.” Instead, Klarna harnessed its internal AI in conjunction with infrastructure like Neo4j’s graph database to generate actionable insights from existing data.

This ongoing evolution in enterprise software reignites the classic debate: build versus buy. While Siemiatkowski is confident about his company’s direction, he remains doubtful that the wider market will adopt a similar strategy, predicting the future of SaaS will lead to fewer, larger players dominating the landscape.

Mobile World Congress 2025: What to Expect from Barcelona

Gear up for an exciting showcase of mobile innovation as The Verge prepares to head to Barcelona for Mobile World Congress 2025! Following our recent experiences at CES, where we marveled at a variety of gadgets from cutting-edge TVs to portable gaming devices, MWC turns the spotlight firmly on mobile technology.

Expect plenty of announcements from major players like Xiaomi and Nothing. In particular, we look forward to the debut of the Nothing Phone 3A, alongside other global manufacturers showcasing their latest devices. While larger firms like Samsung and Google will definitely be present, the details on new offerings remain under wraps—though anticipation grows for updates on the Galaxy S25 Edge.

Besides mainstream launches, we’ll keep our eyes peeled for more unusual and entertaining gadgets that often make their debut at these expos. Recall last year when Humane introduced its ill-fated AI Pin or when we witnessed a laptop boasting a transparent screen—exciting times for tech enthusiasts!

Bookmark this page as we unfold all the latest news, commentary, and exclusive first looks from the bustling show floor. Get ready for an action-packed event with the best of mobile innovations!