Judge Denies Musk's Motion Against OpenAI's Profit Transition
In a significant legal battle, Elon Musk's attempt to pause OpenAI’s transition to a for-profit entity has been thwarted by a judge in Northern California. U.S. District Court Judge Yvonne Gonzalez Rogers stated that Musk did not present adequate evidence to warrant an injunction against OpenAI’s plans, as reported by Bloomberg.
However, the ruling was not entirely favorable for OpenAI. The judge indicated an expedited trial could still occur to address Musk's claims that the conversion to a profit structure is unlawful. In her statement, Judge Rogers pointed out the potential dangers of misusing public funds when transitioning a nonprofit into a for-profit model, claiming that “irreparable harm is incurred when the public’s money is used to fund a non-profit’s conversion into a for-profit.”
This decision adds another layer to Musk's ongoing lawsuit against OpenAI and its CEO Sam Altman, where he accuses the company of straying from its foundational mission to democratize AI research and ensure its benefits are widely accessible.
Interestingly, just weeks before, Musk made headlines for presenting a shocking unsolicited bid of $97.4 billion to acquire OpenAI, an offer that was promptly shot down by the company’s board. This move, although rejected, may lead to future complications for OpenAI as it seeks to establish its new corporate framework.
Klarna’s CEO On Why Building In-House AI Doesn’t Spell the End for Salesforce
In a recent post on social media platform X, Klarna's CEO Sebastian Siemiatkowski explained his fintech company’s decision to abandon Salesforce for their custom-built AI system. Despite the initial buzz that this could signal a broader trend of companies moving away from established CRM solutions, Siemiatkowski expressed skepticism about others following suit. “I don’t think it is the end of Salesforce; might be the opposite,” he noted.
In September, news broke that Klarna’s AI, built on the foundation of OpenAI's ChatGPT, enabled the company to terminate their contract with Salesforce. During a recent investor day, Siemiatkowski highlighted that this shift helped the fintech giant eliminate costs equivalent to $40 million annually by reducing the need for 700 contract employees.
Salesforce’s founder and CEO, Marc Benioff, raised concerns regarding how Klarna manages customer data compliance with such a transition. Siemiatkowski mentioned, “I was tremendously embarrassed” when he faced questions about the move during an event. He aimed to clarify that their internal tech stack—a mixture of SaaS systems, including Neo4j's graph database—was utilized to aggregate customer insights rather than transferring all data to OpenAI.
While Siemiatkowski is cautious about others replicating Klarna's strategy, he predicts major consolidation within the SaaS industry. “Will all companies do what Klarna does? I doubt it,” he wrote, suggesting that it’s more likely we will see fewer, combined SaaS players offering similar innovations.
What's Coming at MWC 2025: Mobile Innovations in Barcelona
As excitement builds, The Verge gears up for Mobile World Congress (MWC) 2025 in Barcelona, Spain—an event expected to showcase cutting-edge mobile technology. Hot on the heels of CES, where we saw various innovations from smart glasses to gaming handhelds, MWC stays true to its mobile-centric roots.
Big names like Xiaomi and Nothing are slated to present their latest creations, including the much-anticipated Nothing Phone 3A. Industry giants like Samsung and Google will also be in attendance, though specific announcements are still under wraps. Rumors suggest that Samsung may unveil more information about the much-awaited Galaxy S25 Edge.
The showfloor is also expected to feature intriguing offerings from smaller manufacturers, much like last year’s unexpected appearance of Humane’s ill-fated AI Pin and other innovative devices.
Stay tuned by bookmarking this page for our live coverage, news, and commentary directly from Barcelona, ensuring you won't miss out on any thrilling tech reveals and trends.
These developments within the spheres of AI, fintech, and mobile technology underline the dynamic nature of our technological landscape—where innovation, competition, and legal challenges continue to shape the future. Keep an eye on these stories as they evolve, impacting industries and consumers alike.