deal

WASHINGTON — The House is scheduled to be back in session Wednesday with a vote expected in the evening on a spending package that, if approved and signed by President Trump, will end the longest government shutdown in U.S. history.

The legislation, which the Senate passed Monday night, is expected to narrowly pass the House, where Republicans hold a slim majority. House Democrats are largely anticipated to oppose the deal, which does not include a core demand: an extension to Affordable Care Act healthcare tax credits that are set to expire at the end of the year.

Speaker Mike Johnson (R-La.) said he believes the deal is poised to pass by the end of the day.

“We believe the long national nightmare will be over tonight,” Johnson told reporters in Washington. “It was completely and utterly foolish and pointless.”

House Democrats were scheduled to meet ahead of the floor vote to discuss their vote. House Minority Leader Hakeem Jeffries said Tuesday night that there is a “strong expectation” that Democrats will be “strongly opposed” to the shutdown deal when it comes to final vote.

If the tax credits lapse, premiums will more than double on average for more than 20 million Americans who use the healthcare marketplace, according to independent analysts at the research firm KFF.

The spending bill, if approved, will fund the government through Jan. 30 and reinstate federal workers who were laid off during the shutdown. It will also guarantee back pay for federal employees who were furloughed or who were working without pay during the budget impasse.

Passage of the bill would mark a crucial moment on the 43rd day of the shutdown, which left thousands of federal workers without pay, millions of Americans uncertain on whether they would receive food assistance and travelers facing delays at airports across the country.

A vote is expected to begin after 4 p.m. EST — after Johnson swears in Adelita Grijalva (D-Ariz.), who was elected seven weeks ago. Once sworn in, Grijalva is set to become the final vote needed to force a floor vote on a petition demanding the Trump administration release files connected to Jeffrey Epstein.

The swearing-in ceremony will soon lay the groundwork for a House vote that Trump has long tried to avoid. It would come as the Epstein saga was reignited on Wednesday morning when Democrats on the House Oversight Committee released new emails in which the late sex trafficker said Trump “knew about the girls” that he was victimizing.

The emails are part of a trove of documents from Epstein’s estate released to the committee.

WASHINGTON — President Trump and Republican lawmakers took a victory lap on Tuesday after securing bipartisan support to reopen the government, ending the longest shutdown in U.S. history without ceding ground to any core Democratic demands.

House members were converging on Washington for a final vote expected as early as Wednesday, after 60 senators — including seven Democrats and an independent — advanced the measure on Monday night. Most Democratic lawmakers in the House are expected to oppose the continuing resolution, which does not include an extension of Affordable Care Act tax credits that had been a central demand during the shutdown negotiations.

The result, according to independent analysts, is that premiums will more than double on average for more than 20 million Americans who use the healthcare marketplace, rising from an average of $888 to $1,904 for out-of-pocket payments annually, according to KFF.

Democrats in the Senate who voted to reopen the government said they had secured a promise from Majority Leader John Thune, a Republican from South Dakota, that they would get a vote on extending the tax credits next month.

But the vote is likely to fail down party lines. And even if it earned some Republican support, House Speaker Mike Johnson, a Republican from Louisiana, has made no promises he would give the measure a vote in the lower chamber.

An end to the shutdown comes at a crucial time for the U.S. aviation industry ahead of one of the busiest travel seasons around the Thanksgiving holiday. The prolonged closure of the federal government led federal employees in the sector to call out sick in large numbers, prompting an unprecedented directive from the Federation Aviation Administration that slowed operations at the nation’s biggest airports.

Lawmakers are racing to vote before federal employees working in aviation safety miss yet another paycheck this week, potentially extending frustration within their ranks and causing further delays at airports entering the upcoming holiday week.

It will be the first time the House conducts legislative work in over 50 days, a marathon stretch that has resulted in a backlog of work for lawmakers on a wide range of issues, from appropriations and stock trading regulations to a discharge petition calling for the release of files in the Jeffrey Epstein investigation.

“We look forward to the government reopening this week so Congress can get back to our regular legislative session,” Johnson told reporters Monday. “There will be long days and long nights here for the foreseeable future to make up for all this lost time that was imposed upon us.”

To reopen the government, the spending package needs to pass the House, where Republicans hold a slim majority and Democrats have vowed to vote against a deal that does not address healthcare costs.

Still, Trump and Republican leaders believe they have enough votes to push it through the chamber and reopen the government later in the week.

Trump has called the spending package a “very good” deal and has indicated that he will sign it once it gets to his desk.

At a Veterans Day event on Tuesday, Trump thanked Thune and Johnson for their work on their work to reopen the government. Johnson was in the crowd listening to Trump’s remarks.

“Congratulations to you and to John and to everybody on a very big victory,” Trump said in a speech at Arlington National Cemetery. “We are opening back our country. It should’ve never been closed.”

While Trump lauded the measure as a done deal, House Minority Leader Hakeem Jeffries, the top Democrat in the chamber, said his party would still try to delay or tank the legislation with whatever tools it had left.

“House Democrats will strongly oppose any legislation that does not decisively address the Republican healthcare crisis,” Jeffries said in a CNN interview Tuesday morning.

Just like in the Senate, California Democrats in the House are expected to vote against the shutdown deal because it does not address the expiring healthcare subsidies.

Rep. Nancy Pelosi said the shutdown deal reached in the Senate “fails to meet the needs of America’s working families” and said she stood with House Democratic leaders in opposing the legislation.

“We must continue to fight for a responsible, bipartisan path forward that reopens the government and keeps healthcare affordable for the American people,” Pelosi said in a social media post.

California Republicans in the House, meanwhile, have criticized Democrats for trying to stop the funding agreement from passing.

“These extremists only care about their radical base regardless of the impact to America,” Rep. Ken Calvert of Corona said in a social media post.

Rep. Kevin Kiley (R-Rocklin) publicly called on Johnson to negotiate with Democrats on healthcare during the shutdown. He said in an interview last month that he thought there was “a lot of room” to address concerns on both sides of the aisle on how to address the rising costs of healthcare.

Kiley said Monday that he was proposing legislation with Rep. Sam Liccardo (D-San José) that proposed extending the Affordable Care Act tax credits for another two years.

He said the bill would “stop massive increase in healthcare costs for 22 million Americans whose premium tax credits are about to expire.”

“Importantly, the extension is temporary and fully paid for, so it can’t increase the deficit,” Kiley said in reference to a frequent concern cited by Republicans that extending the credits would contribute to the national debt.

WASHINGTON — A deal that could end the longest government shutdown in U.S. history is poised to head to the House, where Democrats are launching a last-ditch effort to block a spending agreement reached in the Senate that does not address healthcare costs.

The push comes as Speaker Mike Johnson (R-La.) urged House members on Monday to start making their way back to Washington in anticipation of the chamber voting on a spending package later in the week. The Senate began taking a series of votes Monday night, a day after Senate Republicans reached a deal with eight senators who caucus with Democrats.

The spending plan, which does not include an extension of the Affordable Care Act subsidies that are set to expire at the end of the year, has frustrated many Democrats who spent seven weeks pressuring Republicans to extend the tax credits. It would, however, fund the government through January, reinstate federal workers who were laid off during the shutdown and ensure that federal employees who were furloughed receive back pay.

Senate Majority Leader John Thune (R-S.D.) also promised senators a vote in December that would put lawmakers on record on the healthcare subsidies. Thune said in a speech Monday that he was “grateful that the end is in sight” with the compromise.

“The American people have suffered long enough,” he said. “Let’s not pointlessly drag this bill out. Let’s get it done, get it over to the House so we can get this government open.”

Senate Democrats who defected have argued that a vote is the best deal they could get as the minority party, and that forcing vulnerable Republicans in the chamber to vote on the issue will help them win ahead of next year’s midterm elections.

As the Senate prepared to vote on the deal Monday, Sen. Chuck Schumer of New York, the Democratic leader of the chamber, continued to reiterate his opposition to what he called a “Republican bill.” Schumer, who has faced backlash from Democrats for losing members of his caucus, said the bill “fails to do anything of substance to fix America’s healthcare crisis.”

House Minority Leader Hakeem Jeffries (D-N.Y.) speaks to reporters about the government shutdown.

(Mariam Zuhaib / Associated Press)

Thune’s promise to allow a vote in the Senate does not guarantee a favorable outcome for Democrats, who would need to secure Republican votes for passage through the chamber. And the chance to address healthcare costs will be made even harder by Johnson, who has not committed to holding a vote on his chamber in the future.

“I’m not promising anybody anything,” he said. “I’m going to let the process play out.”

House Minority Leader Hakeem Jeffries (D-N.Y.), meanwhile, told reporters that House Democrats will continue to make the case that extending the subsidies is what Americans are demanding from elected officials, and that there is still a fight to be waged in the chamber — even if it is a long shot.

“What we are going to continue to do as House Democrats is to partner with our allies throughout America is to wage the fight, to stay in the Colosseum,” Jeffries said at a news conference.

Some Republicans have agreed with Democrats during the shutdown that healthcare costs need to be addressed, but it is unlikely that House Democrats will be able to build enough bipartisan support to block the deal in the chamber.

Still, Jeffries said the “loudmouths” in the Republican Party who want to do something about healthcare costs have an opportunity to act now that the House is expected to be back in session.

“They can no longer hide. They can no longer hide,” Jeffries said. “They are not going to be able to hide this week when they return from their vacation.”

Democrats believed that fighting for an extension of healthcare tax credits, even at the expense of shutting down the government, would highlight their messaging on affordability, a political platform that helped lead their party to victory in elections across the country last week.

If the tax credits are allowed to lapse at the end of the year, millions of Americans are expected to see their monthly premiums double.

In California, premiums for federally subsidized plans available through Covered California will soar by 97% on average next year.

Senate Majority Leader John Thune answers questions Monday about a possible end to the government shutdown after eight members of the Democratic caucus broke ranks and voted with Republicans.

(J. Scott Applewhite / Associated Press)

California’s U.S. senators, Adam Schiff and Alex Padilla, were among the Democrats who voted against the deal to reopen the government because it did not address healthcare costs.

“We owe our constituents better than this. We owe a resolution that makes it possible for them to afford healthcare,” Schiff said in a video Sunday night.

Some Republicans too have warned that their party faces backlash in the midterm elections next year if it doesn’t come up with a more comprehensive health plan.

“We have always been open to finding solutions to reduce the oppressive cost of healthcare under the unaffordable care act,” Johnson said Monday.

A final vote could still take several days. Republican Sen. Rand Paul of Kentucky, for one, has said he supports an expeditious vote to reopen the government, but is insisting on a prior vote on an amendment that would eliminate language from the spending deal he says would “unfairly target Kentucky’s hemp industry.”

Without unanimous consent to proceed, the final Senate vote could end up bogged down by procedural delays.

Johnson, meanwhile, has asked members to return by Wednesday in anticipation of a vote in the latter part of the week. Republicans expect to have the votes to pass it, Johnson said.

Any piece of legislation needs to be approved by both the Senate and House and be signed by the president.

Speaking to reporters in the Oval Office on Monday, President Trump said he would support the legislative deal to reopen the government.

“We’re going to be opening up our country,” Trump said. “Too bad it was closed, but we’ll be opening up our country very quickly.”

Trump added that he would abide by a provision that would require his administration to reinstate federal workers who were laid off during the shutdown.

“The deal is very good,” he said.

Johnson said he spoke to the president on Sunday night and described Trump as “very anxious” to reopen the government.

“It’s after 40 days of wandering in the wilderness, and making the American people suffer needlessly, that some Senate Democrats finally have stepped forward to end the pain,” Johnson said. “Our long national nightmare is finally coming to an end, and we’re grateful for that.”

WASHINGTON — Sen. Chuck Schumer of New York is facing mounting pressure to step aside as leader of the Senate Democratic caucus after eight members voted against his wishes Sunday, joining Republicans in a bid to end the longest government shutdown in history.

The vote was just the latest development in a troubling week for the 74-year-old Schumer, who, after eight years as the top Senate Democrat, has faced growing calls from within the party to make way for a new generation of leadership.

Elections last week revealed the emergence of a growing progressive movement in Schumer’s hometown, where the longtime senator declined to endorse Zohran Mamdani in his successful bid for New York City mayor.

National progressive organizations on Monday urged him to step down and have encouraged a popular congresswoman in the state, Rep. Alexandria Ocasio-Cortez, to run for his Senate seat in 2029. Polls show Schumer faces the lowest approval numbers of any national leader in Washington.

His leadership troubles come on the heels of Rep. Nancy Pelosi (D-San Francisco), the first female speaker of the House, announcing her retirement, a decision that generated praise across the political aisle last week reflecting on her shrewd ability to control a sprawling House Democratic caucus during high-stakes votes.

“Schumer is no longer effective and should be replaced,” Rep. Ro Khanna (D-Fremont) wrote on X after the Sunday night vote. “If you can’t lead the fight to stop healthcare premiums from skyrocketing for Americans, what will you fight for?”

Hakeem Jeffries of New York, the top Democrat in the House, told reporters Monday that he strongly disapproved of the emerging deal in the Senate, where seven Democrats and one independent who caucuses with the party voted to proceed with government funding.

For seven weeks, House and Senate Democrats said they would not vote for legislation to reopen the government unless they were able to secure an extension of health insurance subsidies. But the deal reached in the Senate indicated how some Democrats gave in on that bottom-line negotiation.

Schumer reiterated his disapproval of the spending deal in a speech from the floor Monday. He criticized the compromise as a “Republican bill” even though members of his party helped broker the deal.

“Republicans now own this healthcare crisis,” Schumer said. “They knew it was coming. We wanted to fix it and they said no, and now it is on them.”

As Schumer delivered his speech, Jeffries spoke to reporters at a news conference on the other side of the Capitol.

Asked whether he thought Schumer remained an effective leader and should remain in his position, Jeffries replied, “yes and yes.”

When pressed to elaborate, Jeffries said “the overwhelming majority of Senate Democrats led by Chuck Schumer waged a valiant fight,” and turned his disapproval to the Democrats who voted with Republicans on the bill.

“I am not going to explain what a handful of Senate Democrats have decided to do,” Jeffries said. “That’s their explanation to offer to the American people.”

Now that the effort turns to the House, Jeffries said Democrats in the chamber will try to block a deal that does not address healthcare costs.

California Gov. Gavin Newsom offered harsh criticism of Senate Democrats on Monday, who he said had “rolled over.”

After speaking at the Milken Institute’s Global Investors’ Symposium in São Paulo, Newsom told The Times that the move blunted the momentum his party was experiencing following a string of victories last week.

“You don’t start something unless you’re going to finish,” said Newsom, who next heads to the climate summit known as COP30 in Belém, Brazil. “Why the hell did we do this in the first place? We could have gotten this deal in 20 minutes. … Honestly, I don’t know what’s going on with my party.”

Zach Wahls, a Democratic candidate for Senate in Iowa, said Schumer had “failed to lead this party in one of its most critical moments,” calling for him to step down. And Rep. Seth Moulton, a Democrat from Massachusetts, wrote that an effective leader would have been able to keep party members in line.

“Tonight is another example of why we need new leadership,” Moulton wrote on X.

The eight members who voted to reopen the government — 15% of the Senate Democratic caucus — voted directly against Schumer, who voted against the measure.

Wahls speculated that the moderate members who voted with Republicans were privately given Schumer’s blessing to do so.

“The fact that he voted against this deal, while he clearly gave it his blessing in private, is a perfect illustration of why people no longer trust the Democratic Party,” Wahls said, “and as long as he stays in a leadership role, it is going to be impossible for anybody — whether it’s in Iowa or any other swing state — to win a majority.”

Times staff writers Wilner and Ceballos reported from Washington, and Gutierrez contributed from São Paulo.

Thailand says ‘hostility … has not decreased’ and deal on hold until Cambodia meets unspecified demands.

Thailand has suspended the implementation of a United States-brokered peace agreement with neighbouring Cambodia after a landmine blast near their border injured two of its soldiers.

Thai Prime Minister Anutin Charnvirakul said after Monday’s incident that all action set to be carried out under the truce will be halted until Thailand’s demands, which remain unspecified, are met.

“The hostility towards our national security has not decreased as we thought it would,” Anutin asserted. He did not elaborate on what Thailand’s demands were.

There was no immediate response from the Cambodian government.

Simmering

Thailand and Cambodia signed a ceasefire on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Malaysia last month after territorial disputes between the two Southeast Asian countries led to five days of border clashes in July.

Those hostilities killed at least 43 people and displaced more than 300,000 civilians living along the border.

The Thai army said in a statement that Monday’s mine explosion in Sisaket province injured two soldiers.

Thai Defence Minister Natthaphon Narkphanit said the army is still investigating whether the mine was newly laid.

Thailand has previously accused Cambodia of laying new mines in violation of the truce, a charge that the Cambodian government denies.

Similar landmine explosions have occurred both before and since the deal, and tension has simmered.

Under the terms of the ceasefire, Thailand should release 18 Cambodian soldiers, and both sides must begin removing heavy weapons and land mines from the border.

Natthaphon said Thailand will postpone the release of the Cambodian soldiers, initially scheduled for this week.

The two sides have reported some progress on arms removal, but Thailand has accused Cambodia of obstructing mine clearance.

Cambodia said it’s committed to all terms of the truce and urged Thailand to release its soldiers as soon as possible.

Complex issues

Thailand and Cambodia agreed to a truce mediated by Malaysia in July after US President Donald Trump threatened to impose tariffs.

The dispute is among eight conflicts that Trump has taken credit for resolving, although critics have noted that the peace deals he has helped to initiate often implant swift and simplistic ceasefires, leaving complex issues behind the conflicts unresolved and likely to reignite hostilities.

While the Thai-Cambodian truce has generally held since July 29, both countries have traded allegations of ceasefire breaches.

Analysts said a more comprehensive peace pact adjudicating the century-long territorial dispute at the core of the conflict is needed.

WASHINGTON — A group of moderate Democrats has a tentative deal to reopen the government if Republicans promise to hold a vote on expiring healthcare subsidies by December, a potential breakthrough as lawmakers seek to end the shutdown.

The group of three former governors — New Hampshire Sen. Jeanne Shaheen, New Hampshire Sen. Maggie Hassan and Independent Sen. Angus King of Maine — has a deal to pass three annual spending bills and extend the rest of government funding until late January, according to three people familiar with the agreement who requested anonymity until the deal is made public.

The deal was far from assured, and final passage of the legislation could take several days. Republicans had not yet said whether they supported the deal, and it was unclear whether there would be enough Democrats to support it absent their central demand through the now 40-day shutdown — an extension of the Affordable Care Act tax credits that expire Jan. 1.

After Democrats met for more than two hours to discuss the proposal, Senate Democratic leader Chuck Schumer emerged to say he would vote “no.” Independent Sen. Bernie Sanders of Vermont, who caucuses with the Democrats, said as he walked into the meeting that it would be a “horrific mistake to cave in to Trump right now.”

Republicans have been working with the group of moderates as the shutdown continues to disrupt flights nationwide, threaten food assistance for millions of Americans and leave federal workers without pay. But many Democrats have warned their colleagues against giving in, arguing that they can’t end the fight without an agreement to extend the health subsidies.

Majority Leader John Thune (R-S.D.) said earlier in the day that a potential deal was “coming together.” But he has not yet publicly endorsed it.

“We’ll see where the votes are,” Thune said.

Returning to the White House on Sunday evening after attending a football game, Trump did not say whether he endorsed the deal. But he said, “it looks like we’re getting close to the shutdown ending.”

Democrats have now voted 14 times not to reopen the government as they have demanded the extension of tax credits that make coverage more affordable for health plans offered under the Affordable Care Act. Republicans have refused to negotiate on the healthcare subsidies while the government is closed, but they have so far been supportive of the proposal from moderate Democrats as it emerged over the last several days.

The contours of a deal

The agreement would fund parts of government — food aid, veterans programs and the legislative branch, among other things — and extend funding for everything else until the end of January. It would take up Republicans on their longstanding offer to hold a future vote on the healthcare subsidies, with that vote occurring by the middle of December, the people said.

The deal would reinstate federal workers who received reduction-in-force, or layoff, notices and reimburses states that spent their own funds to keep federal programs running during the shutdown. It would also protect against future reductions in force through January, the people said, and guarantee all federal workers would be paid once the shutdown is over.

Democratic Sen. Tim Kaine of Virginia, home to millions of federal workers, said he would support the deal.

“I have long said that, to earn my vote, we need to be on a path toward fixing Republicans’ healthcare mess and to protect the federal workforce,” Kaine said.

Alongside the funding fix, Republicans released final legislative text of three full-year spending bills Sunday. That legislation keeps a ban on pay raises for lawmakers but boosts their security by $203.5 million in response to increased threats. There’s also a provision championed by Sen. Mitch McConnell (R-Ky.) to prevent the sale of some hemp-based products.

Democratic pushback expected

Republicans only need five votes from Democrats to reopen the government, so a handful of senators could end the shutdown with only the promise of a later vote on healthcare. Around 10 to 12 Democrats have been involved in the talks, and the three people familiar with the agreement said they had enough votes to join with Republicans and pass the deal.

Many of their Democratic colleagues are saying the emerging deal is not enough.

“I really wanted to get something on healthcare,” said Michigan Sen. Elissa Slotkin. “I’m going to hear about it right now, but it doesn’t look like it has something concrete.”

House Democrats were also chiming in against it. Texas Rep. Greg Casar, the chairman of the Congressional Progressive Caucus, said a deal that didn’t reduce healthcare costs was a “betrayal” of millions of Americans who were counting on Democrats to fight.

“Accepting nothing but a pinky promise from Republicans isn’t a compromise — it’s capitulation,” Casar said in a post on X. “Millions of families would pay the price.”

Rep. Angie Craig of Minnesota posted that “if people believe this is a ‘deal,’ I have a bridge to sell you.”

Even if the Senate were to move forward with funding legislation, getting to a final vote could take several days if Democrats who oppose the deal object and draw out the process. The first vote, which could come as soon as Sunday evening, would be to proceed to consideration of the legislation.

Republicans preview healthcare debate

There is no guarantee that the Affordable Care Act subsidies would be extended if Republicans agreed to a future vote on healthcare. House Speaker Mike Johnson (R-La.) has said he will not commit to a health vote.

Some Republicans have said they are open to extending the COVID-19-era tax credits as premiums could skyrocket for millions of people, but they also want new limits on who can receive the subsidies and argue that the tax dollars for the plans should be routed through individuals.

Other Republicans, including Trump, have used the debate to renew their years-long criticism of the law and called for it to be scrapped or overhauled.

“THE WORST HEALTHCARE FOR THE HIGHEST PRICE,” Trump said of the Affordable Care Act in a post Sunday.

Shutdown effects worsen

Meanwhile, the consequences of the shutdown were compounding. U.S. airlines canceled more than 2,000 flights on Sunday for the first time since the shutdown began, and there were more than 7,000 flight delays, according to FlightAware, a website that tracks air travel disruptions.

Treasury Secretary Sean Duffy said on CNN’s “State of the Union” that air travel ahead of the Thanksgiving holiday would be “reduced to a trickle” if the government didn’t reopen.

At the same time, food aid was delayed for tens of millions of people as Supplemental Nutrition Assistance Program benefits were caught up in legal battles related to the shutdown. More than two dozen states warned of “catastrophic operational disruptions” as Trump’s administration was demanding states “undo” benefits paid out under judges’ orders last week, now that the U.S. Supreme Court has stayed those rulings.

And in Washington, home to millions of federal workers who have gone unpaid, the Capital Area Food Bank said it was providing 8 million more meals than it had prepared to in this budget year — a nearly 20% increase.

Jalonick and Mascaro write for the Associated Press. Associated Press writers Stephen Groves and Kevin Freking contributed to this report.

Sony Pictures Television and CBS have struck a compromise in their hard-fought legal battle over distribution rights to the popular “Wheel of Fortune” and “Jeopardy!” syndicated game shows.

“We have reached an amicable resolution,” Sony and CBS said Friday in a joint statement. “We look forward to working together to continue bringing these beloved shows to audiences and stations around the world.”

Financial terms were not disclosed.

As part of the deal, CBS will continue to distribute the shows in the U.S. for an additional 2 ½ years — through the 2027-2028 television season. After that, Sony will control the domestic distribution rights.

Sony owns both shows and produces them on its Culver City lot.

The shows have retained their popularity and solid ratings even in the streaming age, as traditional TV has declined. They remain among the most-watched programs on television.

The dispute began more than a year ago, when Sony terminated its distribution deal with CBS and later filed a breach-of-contract lawsuit that claimed CBS had entered into unauthorized licensing deals for the shows and then paid itself a commission. Sony also maintained that budget cuts within CBS, which is owned by Paramount, had hobbled the network’s efforts to support the two shows.

Earlier this year, Sony attempted to cut CBS out of the picture, escalating the dispute.

CBS has long maintained that it had the legal rights to distribute the shows to television stations around the country. The broadcaster previously alleged that Sony’s claims were “rooted in the fact they simply don’t like the deal the parties agreed to decades ago.”

For years, CBS has raked in up to 40% of the fees that TV stations pay to carry the shows. The network took over the distribution of the programs when it acquired syndication company King World Productions in 1999.

King World struck deals with the show’s original producer, Merv Griffin Enterprises, in the early 1980s to distribute “Jeopardy!” and “Wheel of Fortune.” Sony later acquired Griffin’s company, but those early agreements remained in effect.

As part of this week’s resolution, CBS will manage all advertising sales through the 2029-2030 television season.

However, Sony will take over all marketing, promotions and affiliate relations for the shows after the current television season, which ends in mid-2026. Sony will also handle the lucrative brand integration campaigns.

In another element that was important to Sony, the studio will claim international distribution rights beginning this December.

Nov. 7 (UPI) — Cornell University on Friday reached an agreement with the Trump administration to allocate $60 million that would end government investigations and restore several hundred million dollars in research funding for the private school.

Cornell has now joined four other elite universities in making deals.

The allegations stem from accusations of anti-Semitism and admissions discrimination. Cornell, located in Ithaca, N.Y., settled after Brown University, Columbia University, the University of Pennsylvania and the University of Virginia.

Cornell reached the deal with the Department of Justice, Department of Education and Department of Health and Human Services that “will protect Cornell’s students from violations of federal civil rights laws, including from discrimination based on race, sex, or national origin, and promote America’s hardworking farming and rural communities,” according to a DOJ news release.

The Ivy League school agreed to pay a $30 million fine and to invest another $30 million for programs to improve efficiency and lower costs in agriculture and farming. Cornell is a land-grant school that conducts agricultural research. The money will be spread out over three years.

The Trump administration froze more than $1 billion in research funding at the school.

Cornell’s president, Michael Kotlikoff, during his State of the University address in September, said officials didn’t know how the government reached that figure.

He said Cornell had accounted for “nearly $250 million in canceled or unpaid research funds.”

Kotlikoff had said he didn’t want the government to “dictate our institution’s policies.”

“The months of stop-work orders, grant terminations and funding freezes have stalled cutting-edge research, upended lives and careers, and threatened the future of academic programs at Cornell,” he said in a statement to the Cornell community.

“With this resolution. Cornell looks forward to resuming the long and fruitful partnership with the federal government that has yielded, for so many years, so much progress and well-being for our nation and our world.”

The five-page document reads: “This agreement is not an admission in whole or in part by either party. Cornell denies liability with respect to the subject matter of the Investigations.” The deal goes through Dec. 31, 2028.

“Both parties affirm the importance of and their support for academic freedom,” the agreement said. “The United States does not aim to dictate the content of academic speech or curricula, and no provision of this agreement, individually or taken together, shall be construed as giving the United States authority to dictate the content of academic speech or curricula.”

In the agreement, the school and government “affirm the importance of and their support for civil rights, and Cornell has a “commitment to complying with federal civil rights laws and agrees to include the Department of Justice’s ‘Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination.”

Cornell agreed to provide discrimination training to faculty and staff members.

“The Trump administration has secured another transformative commitment from an Ivy League institution to end divisive DEl policies,” Secretary of Education Linda McMahon said.

“Thanks to this deal with Cornell and the ongoing work of DOJ, HHS, and the team at ED, U.S. universities are refocusing their attention on merit, rigor, and truth seeking — not ideology. These reforms are a huge win in the fight to restore excellence to American higher education and make our schools the greatest in the world.”

Attorney General Pam Bondi also praised the deal, saying, “Recipients of federal funding must fully adhere to federal civil rights laws and ensure that harmful DEI policies [diversity, equity and inclusion] do not discriminate against students.

“Today’s deal is a positive outcome that illustrates the value of universities working with this administration — we are grateful to Cornell for working toward this agreement.”

“The Trump Administration is actively dismantling the ability of elite universities to discriminate based on race or religion,” HHS Secretary Robert F. Kennedy Jr. said. “The DOJ’s agreement with Cornell strengthens protections for students against anti-Semitism and all other forms of discrimination.”

The investigations into Cornell centered on campus demonstrations against Israel in the war with Hamas that began on Oct. 7, 2023, and demands to diversify from weapons manufacturers that supplied the Israeli military.

McMahon had said the protests “severely disrupted campus life” and Jewish students were fearful on campus.

Despite a nearly $12 billion endowment, university officials warned about layoffs and “a comprehensive review of programs and head count across the university.”

In the other deals, Penn and Virginia had no financial penalties, while Columbia agreed to a $200 million fine and Brown committed to spend $50 million on workforce development programs.

Harvard hasn’t reached a deal and individually sued in April. The federal government said it would freeze more than $2.2 billion in grants and $60 million in contracts after Harvard refused to agree to demands, including eliminating DEI programs.

Also, another $1 billion in federal health research contracts to Harvard could be withheld. The IRS is considering rescinding the tax-exempt status of the university. And the administration has threatened Harvard’s ability to enroll foreign students.

A Justice Department lawyer told a federal judge Thursday that the University of California system wasn’t close to reaching an agreement. The schools include UCLA.

WASHINGTON — Cornell University has agreed to pay $60 million and accept the Trump administration’s interpretation of civil rights laws in order to restore federal funding and end investigations into the Ivy League school.

Cornell President Michael Kotlikoff announced the agreement on Friday, saying it upholds the university’s academic freedom while restoring more than $250 million in research funding that the government withheld amid investigations into alleged civil rights violations.

The university agreed to pay $30 million directly to the U.S. government along with another $30 million toward research that will support U.S. farmers.

Kotlikoff said the agreement revives the campus’ partnership with the federal government “while affirming the university’s commitment to the principles of academic freedom, independence, and institutional autonomy that, from our founding, have been integral to our excellence.”

The six-page agreement is similar to one signed by the University of Virginia last month. It’s shorter and less prescriptive than others signed by Columbia University and Brown University.

It requires Cornell to comply with the government’s interpretation of civil rights laws on issues involving antisemitism, racial discrimination and transgender issues. A Justice Department memo that orders colleges to abandon diversity, equity and inclusion programs and transgender-friendly policies will be used as a training resource for faculty and staff at Cornell.

The campus must also provide a wealth of admissions data that the government has separately sought from campuses to ensure race is no longer being considered as a factor in admissions decisions. President Trump has suggested some campuses are ignoring a 2023 Supreme Court decision ending affirmative action in admissions.

Education Secretary Linda McMahon called it a “transformative commitment” that puts a focus on “merit, rigor, and truth-seeking.”

“These reforms are a huge win in the fight to restore excellence to American higher education and make our schools the greatest in the world,” McMahon said on X.

Cornell’s president must personally certify compliance with the agreement each quarter. The deal is effective through the end of 2028.

It appears to split the difference on a contentious issue colleges have grappled with as they negotiate an exit from federal scrutiny: payments made directly to the government. Columbia agreed to pay $200 million directly to the government, while Brown University reached an agreement to pay $50 million to state workforce organizations. Virginia’s deal included no payment at all.

Binkley writes for the Associated Press.

Nov. 7 (UPI) — Tesla shareholders approved an unprecedented new package for CEO Elon Musk that could see him become the world’s first trillionaire.

The firm said 75% of shareholders with voting rights on Thursday backed Musk’s 10-year pay deal, which could net him $1 trillion over that time by boosting his stake in Tesla by more than 423 million shares.

The share bonanza is contingent on him delivering on a promise to drive up Tesla’s market capitalization five-fold from is current level of around $1.5 trillion to $8.5 trillion, roughly double the size of the Japanese economy.

Shareholders at the annual general meeting at Tesla HQ in Austin, Texas, voted it through on the recommendation of Tesla’s board, arguing Musk might quit if it were rejected and that the company could not afford to lose him.

Counsel from independent advisors Glass Lewis and Institutional Shareholder Services who said the “astronomical” deal should be rejected due to “unmitigated concerns surrounding the special award’s magnitude and design,” was largely ignored.

Addressing the meeting after the result, Musk thanked the board and shareholders, saying what Tesla was poised to do was not just “a new chapter in the future of Tesla, but a whole new book.”

Under the deal, Musk will receive the stock in tranches tied to delivering financial and production targets, including 20 million new electric vehicles rolling off production lines, 10 million full self-driving subscriptions​, 1 million Optimus humanoid robots and 1 million robotaxis in service.

The first block of stock gets paid to Musk when Telsa market capitalization reaches $2 trillion with the next nine awarded each time the company’s value rises by another $500 billion, up to $6.5 trillion.

Two additional rises in market capitalization, each of $1 trillion, bringing the value to $8.5 trillion, are required for the final two stock grants to kick in.

While the deal is performance-based, it’s not set in stone — with Musk still in line to earn more $50 billion even if he fails to meet the bulk of the targets — and includes riders for so-called “covered events” with the potential to impact Tesla’s future designs, manufacturing and sales.

These include natural disasters, wars, pandemics and changes to “international, federal, state and local law, regulations or other governmental action or inaction.”

In June 2024, Musk reincorporated Tesla in Texas, the company’s headquarters and center of operations, moving from Delaware six months after a court there struck down a $56 billion pay deal the board awarded to Musk in 2018, ruling it was “unfair” and that Musk held excessive power over the rules and size of the deal.

On the same day, shareholders voted to reinstate the package, at the time the largest in corporate history.

In December 2024, the Delaware judge in the case reaffirmed her ruling in favor of the complainant, shareholder Tornetta, and ordered Musk must return what he had already received from the package.

The board eventually awarded Musk a $29 billion “good faith” package in August, aimed at keeping Musk at the helm, that would see him granted 96 million shares after two years of service in a “senior leadership role” at Tesla.

Musk’s mega-deal on Thursday came three weeks after Tesla reported Tesla reported third quarter profits down 37%, despite a jump in revenue to a record $28.1 billion on stronger sales of its electric cars in the domestic market.

WASHINGTON — Elections this week that energized Democrats and angered President Trump have cast a chill over efforts to end the record-breaking government shutdown, raising fresh doubts about the possibility of a breakthrough despite the punishing toll of federal closures on the country.

Trump has increased pressure on Senate Republicans to end the shutdown — now at 37 days, the longest in U.S. history — calling it a “big factor, negative” in the poor GOP showings across the country. Democrats saw Trump’s comments as a reason to hold firm, believing his involvement in talks could lead to a deal on extending health care subsidies, a key sticking point to win their support.

Senate Majority Leader John Thune opened what’s seen as a pivotal day in efforts to end the government shutdown by saying the next step hinges on a response from Democrats to an offer on the table.

“It’s in their court. It’s up to them,” Thune told reporters Thursday.

But Senate Democratic Leader Chuck Schumer held firm in opening remarks Thursday, saying voters “fired a political torpedo at Trump and Republicans” in Tuesday’s election.

“Donald Trump clearly is feeling pressure to bring this shutdown to an end. Well, I have good news for the president: Meet with Democrats, reopen the government,” Schumer said on the Senate floor.

Trump is refusing to meet with Democrats, insisting they must open the government first. But complicating the GOP’s strategy, Trump is increasingly fixated instead on pushing Republicans to scrap the Senate filibuster to speed reopening — a step many GOP senators reject out of hand. He kept up the pressure in a video Wednesday, saying the Senate’s 60-vote threshold to pass legislation should be “terminated.”

“This is much bigger than the shutdown,” Trump said. “This is the survival of our country.”

Senate Democrats face pressures of their own, both from unions eager for the shutdown to end and from allied groups that want them to hold firm. Many see the Democrats’ decisive gubernatorial wins in Virginia and New Jersey as validation of their strategy to hold the government closed until expiring health care subsidies are addressed.

“It would be very strange for the American people to have weighed in, in support of Democrats standing up and fighting for them, and within days for us to surrender without having achieved any of the things that we’ve been fighting for,” said Sen. Chris Murphy, D-Conn.

Meanwhile, talks grind on, but the shutdown’s toll deepens. On Wednesday, the Federal Aviation Administration announced plans to reduce air traffic by 10% across 40 high-volume markets beginning Friday to maintain safety amid staffing shortages. Millions of people have already been affected by halted government programs and missed federal paychecks — with more expected as another round of paydays approaches next week.

Progressives see election wins as reason to fight

Grassroots Democratic groups nationwide touted Tuesday’s election results as voter approval of the shutdown strategy — and warned lawmakers against cutting a deal too soon.

“Moderate Senate Democrats who are looking for an off-ramp right now are completely missing the moment,” said Katie Bethell, political director of MoveOn, a progressive group. “Voters have sent a resounding message: We want leaders who fight for us, and we want solutions that make life more affordable.”

Some Senate Democrats echoed that sentiment. Sen. Bernie Sanders, a Vermont independent who caucuses with Democrats and a leading voice in the progressive movement, said Democrats “have got to remain strong” and should secure assurances on extending health care subsidies — including “a commitment from the speaker of the House that he will support the legislation and that the president will sign.”

Still, how firmly the party remains dug in remains to be seen. Some Democrats have been working with Republicans to find a way out of the standoff, and they held firm after the election that it had not impacted their approach.

“I don’t feel that the elections changed where I was,” said Sen. John Hickenlooper, D-Colo. “I still feel I want to get out of the shutdown.”

Some Republicans also shared in Trump’s concerns that the shutdown is becoming a drag on the party.

“Polls show that most voters blame Republicans more than Democrats,” said Sen. Josh Hawley, a Missouri Republican. “That’s understandable given who controls the levers of power.”

Trump sets another shutdown record

While some Democrats saw Trump’s comments on the shutdown Wednesday as evidence he’d soon get more involved, he’s largely stayed out of the fray. Instead, the talks have intensified among a loose coalition of centrist senators trying to negotiate an end to the shutdown.

Trump has refused to negotiate with Democrats over their demands to salvage expiring health insurance subsidies until they agree to reopen the government. But skeptical Democrats question whether the Republican president will keep his word, particularly after his administration restricted SNAP food aid despite court orders to ensure funds are available to prevent hunger.

Trump’s approach to the shutdown stands in marked contrast to his first term, when the government was partially closed for 35 days over his demands for money to build a U.S.-Mexico border wall. At that time, he met publicly and negotiated with congressional leaders. Unable to secure the money, he relented in 2019.

This time, it’s not just Trump declining to engage in talks. The congressional leaders are at a standoff, and House Speaker Mike Johnson, R-La., sent lawmakers home in September after they approved their own funding bill, refusing further negotiations.

Johnson dismissed the party’s election losses and said he’s looking forward to a midterm election in 2026 that’ll more reflect Trump’s tenure.

In the meantime, food aid, child care money and countless other government services are being seriously interrupted. Hundreds of thousands of federal workers have been furloughed or are expected to work without pay.

Senators search for potential deal

Central to any resolution will be a series of agreements that would need to be upheld not only by the Senate but also by the House and the White House, which is not at all certain in Washington.

Asked if the House would guarantee a vote on extending health care subsidies if the Senate struck a deal, Johnson said Thursday, “I’m not promising anybody anything.”

Senators from both major parties, particularly the members of the powerful Appropriations Committee, are pushing to ensure the normal government funding process in Congress can be put back on track. Among the goals is guaranteeing upcoming votes on a smaller package of bills to fund various aspects of government such as agricultural programs and military construction projects at bases.

More difficult, a substantial number of senators also want some resolution to the standoff over the funding for the Affordable Care Act subsidies that are set to expire at year’s end.

With insurance premium notices being sent, millions of people are experiencing sticker shock on skyrocketing prices. The loss of enhanced federal subsidies, which were put in place during the COVID-19 pandemic and come in the form of tax credits, are expected to leave many people unable to buy health insurance.

Senate Majority Leader John Thune, R-S.D., has promised Democrats at least a vote on their preferred health care proposal, on a date certain, as part of any deal to reopen government. But that’s not enough for some senators, who see the health care deadlock as part of their broader concerns with Trump’s direction for the country.

Cappelletti, Mascaro and Jalonick write for the Associated Press.

ESPN is shifting its strategy on online sports gambling, ending its partnership with Penn Entertainment.

The companies announced Thursday they were terminating an agreement that offered ESPN equity in Penn, which operated the ESPN Bet sportsbook app. The app will no longer carry the familiar red ESPN logo. It will operate under a new name.

ESPN said it will partner with DraftKings, a leading sports betting company, which will provide odds and other gaming-related data for the Walt Disney Co. unit’s programs and its digital platforms. ESPN’s on-air staff will use DraftKings’ odds starting Dec. 1.

According to people familiar with the ESPN-Penn arrangement, the app simply didn’t reach its financial targets in the highly competitive business, which operates in the 31 states where online gambling is legal.

In 2023, Penn agreed to pay $1.5 billion in cash over the next 10 years for the rights to use the ESPN name on its app. As part of the deal, ESPN promoted the product across its programming and provided access to on-air talent. ESPN had the right to purchase up to 31.8 million shares of Penn stock for $500 million over the 10-year period.

“When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space,” said Jay Snowden, CEO and President of Penn Entertainment. “Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration.”

The end of the deal comes shortly after an FBI investigation led to the arrest of Miami Heat player Terry Rozier, who allegedly pulled out of a game claiming injury to deliver a win on one of his prop bets.

ESPN’s decision is unrelated to the recent news, as the company has been in talks for months with DraftKings about a new partnership. But no longer having the ESPN name on a betting app will keep the brand out of the line of fire if the NBA case escalates.

Beginning in December, DraftKings will have its app exclusively integrated across ESPN’s platforms.

The companies said they will “collaborate to advance their shared commitment to responsible gaming, by dedicating prominent assets to educate, raise customer awareness and promote responsible play through campaigns and integrations.”

DraftKings will provide the betting tab within the ESPN app and its customers will receive special promotions for ESPN’s newly launched direct-to-consumer streaming product.

DraftKings operates in 28 states and in Washington, D.C., and Ontario, Canada, and has more than 10 million customers across its products.

Kieran Culkin and wife Jazz Charton made good on their Emmys pact, recently welcoming their third child, according to the former’s “Succession” co-star.

Oscar and Emmy winner Culkin’s on-screen sister Sarah Snook, also an Emmy-winning actor, announced the arrival of the couple’s newest child while speaking to Access Hollywood on Monday. “I met the little baby, it’s so cute,” she said during the premiere of Peacock’s “All Her Fault.”

“They’re very happy and so cute,” she added.

A representative for Culkin did not immediately respond to a request for confirmation. Charton, a contributor for the Financial Times, has not yet publicly addressed the arrival of their littlest one.

“A Real Pain” star Culkin, younger brother of “Home Alone” star Macaulay Culkin, tied the knot with Charton in 2013. They share two children, Kinsey Sioux and Wilder Wolf, and lovingly teased a plan to grow their family during the 75th Emmy Awards in January 2024.

Culkin, 43, famously used part of his acceptance speech for the lead actor prize to remind Charton, 37, of the deal they had struck prior to the ceremony. As he acknowledged his wife and children, Culkin declared, “I want more.”

“You said ‘maybe,’ if I win! I love you so much,” he told Charton from stage.

Charton confirmed that baby No. 3 was on the way in late September, sharing a cheeky Instagram post that also tapped into her well-documented fan love for “Matrix” star Keanu Reeves. “Saw Keanu Reeves on broadway and now I’m 9 months pregnant,” she captioned her post, which featured photos of her baby bump, “This is very on brand for me.”

She revealed she was expecting amid the debut of Reeves and longtime “Bill & Ted” collaborator Alex Winter’s production of “Waiting for Godot.” She quipped in her caption that she had “made a deal with this baby to let me make it to this [show] before labor, not sure what it wants in return but I’m CLEARLY a woman of my word.”

Snook, the first to break the couple’s baby news, has remained close to her “Succession” co-star since the hit HBO drama concluded two years ago. Culkin and Snook respectively starred as Roman and Shiv Roy, two of numerous potential — ahem — successors to media mogul Logan Roy (Brian Cox). “Succession” aired from 2018 to 2023 and won a total of 19 Primetime Emmy Awards, including acting prizes for Culkin, Snook and co-stars Jeremy Strong and Matthew Macfadyen.

With the arrival of Culkin and Charton’s third child, it’s clear that the “Succession” legacy now extends past powerhouse performances, viral memes and memorable lines. Anyone got a ludicrously capacious baby bag?

Clippers owner Steve Ballmer is being sued by 11 former investors in the sustainability firm Aspiration Partners.

Ballmer was added this week as a defendant in an existing civil lawsuit against Aspiration co-founder Joseph Sanberg and several others associated with the now-defunct company. Ballmer and the other defendants are accused of fraud and aiding and abetting fraud, with the plaintiffs seeking at least $50 million in damages.

“This is an action to recover millions of dollars that Plaintiffs were defrauded into investing, directly or indirectly, in CTN Holdings, Inc. (‘Catona’), previously known as Aspiration Partners, Inc,” reads the lawsuit, which was initially filed July 9 in Los Angeles County Superior Court, Central District.

Attorney Skip Miller said his firm, Miller Barondess LLP, filed an amended complaint Monday that added the billionaire team owner and his investment company, Ballmer Group, as defendants in light of recent allegations that a $28-million deal between Aspiration and Clippers star Kawhi Leonard helped the team circumvent the NBA’s salary cap.

“Ballmer was the perfect deep-pocket partner to fund Catona’s flagging operations and lend legitimacy to Catona’s carbon credit business,” says the amended complaint, which has been viewed by The Times. “Since Ballmer had publicly promoted himself as an advocate for sustainability, Catona was an ideal vehicle for Ballmer to secretly circumvent the NBA salary cap while purporting to support the company as a legitimate environmentalist investor.”

Although Ballmer did invest millions in Aspiration, it is not known whether he was aware of or played a role in facilitating the company’s deal with Leonard. The Times reached out to the Clippers for a comment from Ballmer or a team representative but did not receive an immediate response.

CTN Holdings filed for bankruptcy in March and, according to the lawsuit, is no longer in operation.

In late August, Sanberg agreed to plead guilty in federal court to a scheme to defraud investors and lenders of more than $248 million. On Sept. 3, investigative journalist Pablo Torre reported on his podcast that after reviewing numerous documents and conducting interviews with former employees of the now-defunct firm, he did not find evidence of any marketing or endorsement work done by Leonard for the company.

That was news to the plaintiffs, according to their amended lawsuit.

“Ballmer’s purported status as a legitimate investor in Catona was material to Plaintiffs’ decision to invest in and/or keep their investments with Catona,” the complaint states.

It also says that “Sanberg and Ballmer never disclosed to Plaintiffs that the millions of dollars Ballmer injected into Catona were meant to allow Ballmer to funnel compensation to Leonard in violation of NBA rules and keep Catona’s failing business afloat financially. Sanberg and Ballmer’s scheme to pay Leonard through Catona to evade the NBA’s salary cap was only later revealed in 2025, by journalist Pablo Torre.”

Miller said in a statement to The Times: “A lot of people including our clients got hurt badly in this case. This lawsuit is being brought to make them whole for their losses. I look forward to our day in court for justice.”

The NBA announced an investigation into the matter in early September. Speaking at a forum that month hosted by the Sports Business Journal, Ballmer said that he felt “quite confident … that we abided [by] the rules. So, I welcome the investigation that the NBA is doing.”

The Clippers said in a statement at the time: “Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false: The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations.

“Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation.”

Leonard also has denied being involved in any wrongdoing associated with his deal with the now-defunct firm. Asked about the matter Sept. 29 during Clippers media day to open training camp, Leonard said, “I don’t think it’s accurate” that he provided no endorsement services to the company. He added that he hadn’t been paid all the money due to him from the deal.

The announcement comes less than week after Amazon laid off 14,000 people.

OpenAI has signed a new deal valued at $38bn with Amazon that will allow the artificial intelligence giant to run AI workloads across Amazon Web Services (AWS) cloud infrastructure.

The seven-year deal announced on Monday is the first big AI push for the e-commerce giant after a restructuring last week.

The new deal will give the ChatGPT maker access to thousands of Nvidia graphics processors to train and run its artificial intelligence models.

Experts say this does not mean that it will allow OpenAI to train its model on websites hosted by AWS – which includes the websites of The New York Times, Reddit and United Airlines.

“Running OpenAI training inside AWS doesn’t change their ability to scrape content from AWS-hosted websites [which they could already do for anything publicly readable]. This is strictly speaking about the economics of rent vs buy for GPU [graphics processing unit] capacity,” Joshua McKenty, CEO of the AI detection company PolyguardAI, told Al Jazeera.

The deal is also a major vote of confidence for the e-commerce giant’s cloud unit, AWS, which some investors feared had fallen behind rivals Microsoft and Google in the artificial intelligence (AI) race. Those fears were somewhat eased by the strong growth the business reported in the September quarter.

OpenAI will begin using AWS immediately, with all planned capacity set to come online by the end of 2026 and room to expand further in 2027 and beyond.

Amazon plans to roll out hundreds of thousands of chips, including Nvidia’s GB200 and GB300 AI accelerators, in data clusters built to power ChatGPT’s responses and train OpenAI’s next wave of models, the companies said.

Amazon already offers OpenAI models on Amazon Bedrock, which offers multiple AI models for businesses using AWS.

OpenAI’s sweeping restructuring last week moved it further away from its non-profit roots and also removed Microsoft’s first right to refusal to supply services in the new arrangement.

Image hurdles

Amazon’s announcement about an investment in AI comes only days after the company laid off 14,000 people despite CEO Andy Jassy’s comment in an earnings call on Thursday saying the layoffs were not driven by AI.

“The announcement that we made a few days ago was not really financially driven, and it’s not even really AI-driven, not right now at least,” Jassy said.

OpenAI CEO Sam Altman has said the startup is committed to spending $1.4 trillion to develop 30 gigawatts of computing resources – enough to roughly power 25 million United States homes.

“Scaling frontier AI requires massive, reliable compute,” said Altman. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

This comes amid growing concerns about the sheer amount of energy demand that AI data centres need to operate. The Lawrence Berkeley National Laboratory estimates that AI data centres will use up to 12 percent of US electricity by 2028.

An AP/NORC poll from October found that 41 percent of Americans are extremely concerned about AI’s impact on the environment, while another 30 percent say they are somewhat concerned as the industry increases its data centre footprint around the US.

Signs of a bubble

Surging valuations of AI companies and their massive spending commitments, which total more than $1 trillion for OpenAI, have raised fears that the AI boom may be turning into a bubble.

OpenAI has already tapped Alphabet’s Google to supply it with cloud services, as Reuters reported in June. It also reportedly struck a deal to buy $300bn in computing power for about five years.

While OpenAI’s relationship with Microsoft, which the two forged in 2019, has helped push Microsoft to the top spot among its Big Tech peers in the AI race, both companies have been making moves recently to reduce reliance on each other.

Neither OpenAI nor Amazon were immediately available for comment.

On Wall Street, Amazon’s stock is surging on the news of the new deal. As of 11:15am in New York (16:15 GMT), it is up by 4.7 percent.