Judge Rejects Musk’s Attempt to Block OpenAI’s For-Profit Transition
In a significant development from Northern California, a federal judge has declined Elon Musk’s recent request for an injunction aimed at stalling OpenAI’s shift to a for-profit model. According to Bloomberg, U.S. District Court Judge Yvonne Gonzalez Rogers ruled on Tuesday that Musk did not present sufficient evidence to warrant such an injunction.
However, her ruling came with a caveat. Judge Rogers indicated that the court is ready to expedite a trial over Musk’s accusation that OpenAI’s transition is unlawful. Notably, she remarked that "irreparable harm is incurred when the public’s money is used to fund a non-profit’s conversion into a for-profit." This statement underscores the larger debate around the balance between innovation and ethical responsibility in tech companies.
Musk's legal battle with OpenAI—and its CEO, Sam Altman—centers on a claim that the organization has strayed from its original nonprofit mission, which was to democratize the benefits of AI research. Now, as OpenAI aims for a more traditional corporate framework, questions regarding its accountability and purpose loom large.
In an unexpected twist, Musk recently made headlines by submitting an unsolicited takeover offer for OpenAI, valued at a staggering $97.4 billion—a proposition that the OpenAI board swiftly rejected. The ethereal promise of AI has apparently sparked contention not just within the industry, but at the legal level as well.
Klarna's CEO Casts Doubt on AI Replacing Salesforce in CRM
Sebastian Siemiatkowski, the founder and CEO of Klarna, has been vocal on X about the fintech company’s decision to move away from Salesforce's CRM platform in favor of its in-house constructed AI system. Yet, he doesn't foresee this trend becoming widespread. “I don’t think it is the end of Salesforce; might be the opposite,” he stated, highlighting the unique circumstances that led Klarna to forge its path.
News broke last month that Klarna’s homegrown AI system, built on principles from OpenAI’s ChatGPT, allowed the firm to sever ties with Salesforce, leading to the replacement of 700 full-time workers and annual savings of roughly $40 million. At an investor day, Siemiatkowski articulated the drastic transformation, capturing the imagination of many in the tech community.
Salesforce’s own Marc Benioff raised eyebrows, questioning Klarna’s methods of handling customer data and compliance issues—a critical concern in today’s heavily regulated environment. Siemiatkowski addressed these concerns during a recent Twitter thread, clarifying that Klarna had not simply shifted its data to OpenAI but consolidated information from various platforms, including Salesforce, into an internally developed tech stack.
As the fintech prepares for an IPO, there’s speculation about its future, but Siemiatkowski believes that while more companies may consolidate their SaaS solutions, the overall SaaS market is primed for economic consolidation rather than widespread independent shifts toward bespoke AI solutions.
In simpler terms, this presents a classic dilemma in enterprise software: should companies build or buy their next-gen solutions? While Siemiatkowski anticipates that few will follow Klarna's path, it’s clear that the industry's landscape is evolving rapidly.
MWC 2025: The Latest in Mobile Tech from Barcelona
Gear up for Mobile World Congress 2025! The Verge is set to bring you all the excitement straight from Barcelona. Fresh off CES, where we marveled at innovations in TVs, gaming handhelds, and smart glasses, MWC 2025 promises to be a showcase for all things mobile.
Expect announcements from major players like Xiaomi and the up-and-coming Nothing, which is anticipated to unveil the Nothing Phone 3A, as well as other global manufacturers. And with giants like Samsung and Google in attendance, we’re holding our breath for potential reveals, including news on Samsung’s Galaxy S25 Edge.
In addition to the mainstream offerings, we’ll also keep an eye out for quirky gadgets and innovations only available on the show floor. Last year, we witnessed the unfortunate debut of Humane’s AI Pin and a laptop with a transparent screen.
For anyone looking to get the scoop on cutting-edge mobile technology, this is the place to be. Don’t forget to bookmark our page for updates, insights, and first-hand looks from the floor of one of the biggest tech gatherings on the planet!
Stay tuned as we bring you all the latest in mobile innovation!