CNBC's MacKenzie Sigalos joins 'Closing Bell Overtime' to report on OpenAI's newly finalized restructuring. Microsoft now holds a 27% stake worth $135 billion, while OpenAI commits $250 billion in future Azure spend and reshuffles IP rights in the updated partnership.

San Francisco

OpenAI has finalized a significant restructuring, removing a major obstacle to accessing a $40 billion funding round led by SoftBank. This development also paves the way for a potential public offering, with CEO Sam Altman indicating that an IPO is likely due to the company's capital requirements.

As a result of the restructuring, Microsoft now holds a 27% stake in OpenAI, valued at about $135 billion, making it the company's largest investor. The announcement follows a period of increased investment and competition in the artificial intelligence sector, as major tech companies continue to prioritize AI development.

OpenAI clears restructuring hurdle, unlocks $40B SoftBank-led funding

Idea that AI will not replace jobs is being put to the test today First Chegg announcing it will lay off 45% of its workforce blaming the quote new realities of AI We should note Chegg is a very small market cap company these days Then there's the biggie Amazon the company announcing it's slashing approximately 14,000 jobs And while they don't chalk it up explicitly to artificial intelligence They do emphasize changes from AI and its commitment to invest in the technology So for more let's bring in Mackenzie Segalos and Mac those are just a couple of the announcements we've gotten in recent days Yes, it is and in terms of this Amazon announcement It's a really striking contrast because you've got Amazon spending tens of billions of dollars on chips Data centers and then that big equity bet on anthropic while cutting tens of thousands of jobs So today's 14,000 layoffs are part of a broader push to flatten management and move faster Reallocating resources to high-priority bets like it's custom in-house Tranium chips where it's trying to compete directly with Nvidia But while Amazon slims down to operate more like a lean startup It's pouring money into AI infrastructure without the public momentum of rivals like Microsoft or Google There's no flagship chat bot. No blockbuster AI hires Alexa plus has struggled to gain traction yet the spending continues even as AWS lags Oracle and Microsoft In deal backlog heading into earnings and after last week's 15-hour AWS outage that raised questions about its legacy cloud infrastructure and Morgan It was just last week that anthropic committed tens of billions to a cloud deal with Google not Amazon So bottom line here is that Amazon is spending like an AI leader But hasn't shown that it can win and that gap may help explain why the layoffs are so deep Yeah, it's super interesting And of course just in terms of some of the other layoff announcements and I'm not saying that they're all due to AI or not that we've gotten in recent days target applied materials Rivian Charter Molson cores and Some even at meta so it'll be interesting to see what we get in earnings over the next couple of days I do want to shift gears though Mac and I do want to get your take on The announcement we got from open AI today and thus the announcement the disclosure We got from Microsoft in the wake of it to without restructuring finally done So this is open AI clearing a major hurdle because for months this Recapitalization was the one thing standing in the way of two massive moves for open AI So one unlocking that 40 billion dollars soft bank led funding round and then eventually going public and Sam Altman I was just listening to a live stream and he said that he thinks it's fair to say that an IPO is the most likely Path of them given the capital needs that they'll have now to get there They had to finalize this restructure and so one key takeaway here Morgan is that Microsoft now holds a 27% stake that's worth about 135 billion dollars. It's the single largest investor in open AI

FBI Director Kash Patel announced an operation that apparently "thwarted a potential terrorist attack" during Halloween weekend in Michigan. CBS News' Scott MacFarlane has more.

Dearborn

Patel says FBI stopped a potential "terror attack" in Michigan

Washington and Beijing are "in agreement on many things," U.S. President Donald Trump said after the face-to-face meeting that lasted nearly two hours, the first between both leaders in six years.

Busan

Global Tariffs

Trump announces deal with China after talks with Xi in South Korea

U.S. President Donald Trump ordered the resumption of nuclear weapons tests for the first time since 1992. A day earlier, Russian President Vladimir Putin said Russia had successfully tested a nuclear-powered super torpedo.

Washington

Trump orders nuke tests after Russia tests nuclear-powered torpedo

Sudan and the UAE clash at the UN Security Council—Khartoum accuses Abu Dhabi of funding the RSF amid reports of atrocities.

New York

UN Security Council meeting: Sudan and UAE trade heated accusations

U.S.-China tensions cast a shadow over the APEC summit in South Korea — Leaders debate trade, diplomacy, and the bloc’s mission of free trade.

Gyeongju-si

APEC summit: U.S.-China rivalry looms over trade and diplomacy

Microsoft, Meta and Alphabet recently reported their quarterly earnings and one thing is certain: the jaw-dropping investments in artificial intelligence are only just getting started. This all comes just days after Nvidia became the world's first-ever $5 trillion company.

California

Meta stock falls over 10% after commitment to raise AI spending

CBS News has confirmed that the Pentagon ordered all state National Guards to form what they're calling "quick reaction forces" available for rapid deployments to address potential civil unrest.

Pentagon orders state National Guards to form rapid response units

Taylor Taranto has been sentenced to time served plus 36 months of supervised release after being convicted of threatening former President Barack Obama. He was also pardoned on Jan. 6 Capitol rioting charges by President Trump earlier this year.

Taylor Taranto sentenced to time served for Obama threat

Authorities have charged five people in connection with the overdose deaths of three 19-year-olds, including Leandro De Niro-Rodriguez, the grandson of actor Robert De Niro.

Five arrested over overdose death of Robert De Niro’s grandson

Prince Andrew is being stripped of his royal titles and must move out of his mansion, Buckingham Palace announced on Thursday. Andrew has come under intense scrutiny over his friendship with convicted sex offender Jeffrey Epstein.

London

Prince Andrew stripped of royal titles over Jeffrey Epstein ties

French police have now detained seven people over the robbery at France's landmark museum on 19 October.

Paris

Louvre heist: Five new suspects arrested as search for jewels continues

U.S. Treasury Secretary Scott Bessent said Thursday that China has approved a TikTok transfer deal. CBS News White House reporter Willie James Inman has more.

Treasury Secretary Bessent says China approved TikTok transfer deal

As Hurricane Melissa continues its trail of death and devastation through the Caribbean, Jamaica is taking stock. With over 75% of the country without power and $22 billion in damage, experts estimate recovery could take a decade.

Kingston

Jamaica reels as Hurricane Melissa leaves behind devastation

House lawmakers have been told their paychecks will be delayed until Congress passes a new funding bill. CBS News congressional reporter Taurean Small has the latest on the government shutdown.

House lawmakers' paychecks delayed until government reopens

Israeli planes and tanks pounded areas in eastern Gaza on Thursday (October 30), Palestinian residents and witnesses said, a day after Israel said it remained committed to a U.S.-backed ceasefire despite launching more lethal bombardments in the territory.

Jerusalem

Middle East Conflict

Israel strikes Gaza after asserting commitment to ceasefire

In the Netherlands, the centrist D66 party looks on course to beat the far right in the national election. Exit polls have predicted Rob Jetten's party will claim victory, which could lead him to become the country's youngest ever prime minister.

Amsterdam

Dutch centrist party wins big in election as far right loses support

President Donald Trump ordered the U.S. military on Thursday (October 30) to immediately resume testing nuclear weapons after a gap of 33 years, minutes before beginning a meeting with Chinese President Xi Jinping.

Trump tells Pentagon to resume testing U.S. nuclear weapons

President Trump will hold a bilateral meeting with Chinese President Xi Jinping. This is their first face-to-face since Mr. Trump returned to the White House. Jessi Mitchell anchors this Special Report.

Trump, Xi Jinping meet face-to-face in South Korea over trade

The Bank of Canada made a 25-basis-point cut to its key interest rate while governor Tiff Macklem suggested rates will hold where they are as long as inflation stays in the target range of two per cent.

Ottawa

Bank of Canada cuts key interest rate to 2.25%

After leaving Jamaica with widespread power outages and flooding, Melissa caused fatal flooding in Haiti that has killed 25 people and hit Cuba with a storm surge.

Port-au-Prince

Hurricane Melissa causes floods in Haiti, killing at least 25

Fentanyl production tops the agenda as the U.S. and China discuss curbing exports tied to the deadly opioid crisis.

Fentanyl crackdown central in U.S.-China talks

APEC members face economic uncertainty amid rising US-China rivalry—South Korea prepares for potential fallout from high-stakes talks.

U.S.-China trade tensions leave South Korea navigating APEC fallout

President Putin announced that the Poseidon super torpedo was successfully tested and cannot be intercepted, marking a new stage in Russia’s naval capabilities.

Moscow

Russia says its successfully tested nuclear-capable underwater drone

The Justice Department has put D.C. prosecutors on leave after they submitted a court memo describing those who attacked the Capitol on January 6, 2021 as "rioters." The filing was in a case involving Taylor Taranto, who was part of the Capitol riot and is currently facing unrelated weapons charges.

DOJ sidelines prosecutors over Jan. 6 'rioters' court filing

Sean Grayson, the former Illinois sheriff's deputy who shot and killed Sonya Massey in her home in 2024, was found guilty of second-degree murder.

Illinois

Ex-officer found guilty of murder in Sonya Massey shooting

President Donald Trump is sending America's largest aircraft carrier to the Caribbean to help stop small boats he says are transporting drugs to the U.S. Trump says the U.S. is in "armed conflict" with Venezuelan drug cartels.

U.S. masses more naval forces off coast of Venezuela

The U.S. Federal Reserve announced Wednesday that it will lower its benchmark interest rate by 0.25 percentage points in its second straight cut.

Fed lowers interest rates by 0.25 percentage points

The police operation was one of the most violent in Brazil’s recent history, with human rights organizations calling for investigations into the deaths.

Rio de Janeiro

Raid on Rio drug trafficking gang leaves at least 64 dead

Hurricane Melissa made landfall in Cuba on Wednesday after ripping through Jamaica. CBS News' Jarred Hill has more details.

Havana

Hurricane Melissa makes landfall in Cuba after slamming Jamaica

U.S. President Donald Trump landed in South Korea on Wednesday (October 29) for the final leg of his Asia trip, optimistic about striking a trade war truce with Chinese President Xi Jinping after summit talks with South Korea's Lee Jae Myung.

Breakdown