CNBC's Deidre Bosa and Steve Kovach, and Tae Kim, Barron’s senior technology writer, joins 'The Exchange' to discuss the latest news regarding AI.

Recent advancements by Google’s Gemini and Anthropic’s Claude Opus AI models have intensified competition in the artificial intelligence sector. Despite increased media coverage for Gemini, ChatGPT remains the top app store choice due to its established user base and personalized features. Experts highlight that the strong performance of multiple models on industry benchmarks is a positive sign for overall AI adoption and progress.

Apple is taking a distinct approach by focusing on privacy and device integration for its upcoming chatbot, rather than competing on hardware or engagement metrics. Meanwhile, Google’s use of TPUs has reduced costs and expanded distribution potential, while OpenAI is expected to enhance its models using new, more powerful NVIDIA hardware. The ongoing rivalry is seen as expanding the AI market, though concerns remain about how companies balance user engagement with safety.

Gemini and Claude news bullish for AI overall, says Barron's Tae Kim

OK, Tej, jump in here because I know, look, we've all seen the headlines about how great the Google Gemini model is, and that's fine. But I'm already noticing that as a user, I'm kind of defaulting to chat GPT because that's just where I've had my history. I have my history. I have my searches. It knows me. And I don't want to spend that kind of time with someone new. And I know that you're a little bit skeptical as well of the idea that Gemini is going to suddenly come in and eat the company's lunch. But obviously, it sounds like they have reason to be concerned. I think the history of every company, there's fits and starts. And right now, chat GPT is facing competition. But if you look at what's going on in the app store, even with this flurry of media coverage on Gemini, chat GPT is still number one. I mean, Gemini was number one for a little bit, like a few hours here and there. But I think chat GPT's market share, like you said, the personalization, the memory and all the workflows, they're going to come back. I actually think that Gemini and Cloud Opus from Anthropic, what happened over the last two weeks when both models kind of beat each other and did really well on the benchmarks, that's extremely bullish for the entire AI adoption, AI progress space. It shows that the scaling laws are still intact. And I fully expect chat GPT and OpenAI, when they train the new models on the new Blackwell NVL72 clusters that just went live at Microsoft data centers in October, those clusters are so much more powerful. When they train the new models on those Blackwell servers, chat GPT will come right back. Steve, jump in here. Yeah, let me tie this all together, what Deirdre and Tay just said. And we can all flow it back to Apple. So you have engagement, right? This engagement problem with OpenAI. You have this idea that the models are performing better and you have to spend than each other and kind of leapfrogging each other. Apple is taking a totally different approach. They are not spending enormous amounts of money on these NVIDIA chips. They're not chasing engagement. What the idea is now that they've set these pieces in place, they had the executive shakeup last night, they set the pieces in place to have a chatbot as they originally pitched it, which was, hey, it's going to use all the personal stuff on your phone in a private way. You talked about memory, Kelly, how that is a great thing that you like about chat GPT. Well, what if the chatbot could also tie into your email? What if it could tie into your text messages? What if it could tie into everything on your phone in a private way? It would be even more useful. That is the pitch Apple's going to make in a few months' time early next year when they've released this chatbot. So we're seeing this wide open pie basically continue to get bigger as they all chase each other. One other thing, we talk about engagement, huge red flag when you have OpenAI talking about this because we've seen this throughout the tech industry in Web 2.0 with social media networks. When they need to boost engagement, they do some junky things. Whether that's weird push notifications, the thing you get when you talk to chat GPT, it's always asking you, can I help you with something else, Kelly? Can I help you with something else? And then, of course, you get into these lawsuits about suicides and self-harm and so forth. OpenAI has yet to prove that it takes that balance of safety and growth as seriously as maybe it should. So one red flag I had when I hear all these code red, code red, code red within OpenAI, and perhaps Deirdre can add on to this, is what changes can we expect to see to boost the engagement? Are they going to change it to be more sycophantic again? What are they going to do here in order to get that engagement growing the way it was growing? And that's something to be concerned about. Steve, that's a great question. Let me help you out with that. That's what it would say. Deirdre, jump in here. Yeah, and I wonder what is that going to cost OpenAI, right? Because their model is a little different. And what we saw with Gemini is that they built a world-class model using TPUs. That is such a key point. Google is able to do things like distribute it through AI mode, potentially billions of users. Question, what's going to power the Apple chatbot? Is it going to be Gemini? We know that TCUs have brought down the cost, and that's a huge advantage that Google now has over OpenAI, or maybe OpenAI, it's already been reported, going to turn more to TPUs as well. I'm sure Tay has thoughts on this. Go ahead, Tay. I think all this discussion about TPUs is really amusing because Google released the specs in Irowood back in April, and now everyone's surprised. There's this thing called TPU that exists. NVIDIA's NVL-72 Blackwell... It's not that, though, Tay, is it? It's the fact that they trained Gemini 3, which is the leading model right now, fully on TPUs, because you can say all those things, but the proof is in the pudding, isn't it? Well, Anthropic just beat Gemini, even though part of that is TPU. Trained on TPUs. Yes, but like I said, the NVL-72 GB300 Blackwell, which is a much more performant version of the NVIDIA chips, have just gone live in October, and when OpenAI trains their latest models on those chips, it's going to be much more performant.

Venezuela holds the world’s largest proven oil reserves, more than five times more than the United States.

Caracas

Maduro accuses U.S. of pushing for regime change to get Venezuela’s oil

Australia starts enforcing a landmark ban requiring social media platforms to take down accounts belonging to under-16s

Canberra

Australia under-16s social media accounts to be taken down

European Union lawmakers and member states reached a deal to ban all imports of Russian gas before the end of 2027, as the bloc seeks to choke off key funds feeding Moscow's war chest. Aimed at breaking a reliance the bloc has struggled to end despite the invasion of Ukraine, the accord marks a compromise between EU capitals and the European Parliament, which wanted the ban to hit sooner.

Brussels

EU agrees deal to ban Russian gas by end of 2027

President Trump pardoned Democratic Rep. Henry Cuellar of Texas and his wife on Wednesday. The couple was indicted in 2024 on more than a dozen federal charges. Cuellar has denied any wrongdoing.

Washington

Trump pardons Democratic Rep. Henry Cuellar and his wife

Sources say the Pentagon watchdog found Defense Secretary Pete Hegseth could have endangered American service members when he shared military information in a Signal group chat in March. Alex Plitsas, a former Pentagon official, joins "The Daily Report" to discuss.

Watchdog found Hegseth jeopardized sensitive military information

Democrats on the House Oversight Committee Wednesday released never-before-seen images of the private island owned by convicted sex offender Jeffrey Epstein. CBS News legal reporter Katrina Kaufman has more details.

Never-before-seen images of Jeffrey Epstein's island released

The doctor who pleaded guilty to selling ketamine to Matthew Perry in the weeks before the actor's overdose death has been sentenced to 30 months in prison.

Los Angeles

Doctor who sold Matthew Perry ketamine sentenced to 30 months in prison

Google subsidiary YouTube has criticized an Australian law banning social media accounts for under-16s, arguing the legislation set to start Dec 10 makes young users of Instagram, Facebook, TikTok and YouTube less safe.

YouTube attacks Australia's underage social media ban

U.S. envoys Jared Kushner and Steve Witkoff met Putin in the Kremlin on a revised Ukraine peace plan but left without a deal. Russia insists on territorial gains, army cuts, and blocking NATO membership, while Zelenskyy calls for long-term deterrence against future aggression.

Moscow

Ukraine Invasion

U.S. envoys Kushner, Witkoff leave Kremlin without Ukraine deal

U.S. President Donald Trump, in a televised cabinet meeting, said “I don't want them in our country” about Somali immigrants, sparking outrage from politicians and migration experts. His remarks coincided with reports of planned federal raids targeting Minneapolis’ Somali community.

Trump targets Somali immigrants amid reports of Minneapolis raids

A Russian tanker carrying sunflower oil was hit by a drone off the Turkish coast, with no casualties. The attack is part of recent strikes on Russian-flagged vessels targeting Moscow’s oil sector, while Putin warns of possible retaliatory measures.

Russian tanker attacked off Turkey, Putin warns of retaliation

U.S. Defense Secretary Pete Hegseth said he had watched the first U.S. strike in September on an alleged drug-smuggling vessel in real time, but did not see survivors in the water or the second lethal strike that he described as being carried out in the "fog of war."

Hegseth says he didn't see survivors before second strike on boat

Republican comfortably beats Democratic challenger after polls showed candidates in a close race in US state.

Tennessee

Trump’s pick Van Epps wins special election in deep-red Tennessee

U.S. President Donald Trump threatened to expand his crackdown on drug trafficking during a cabinet meeting, suggesting he’d order land strikes on Venezuela and attacks on any country transporting illegal drugs into the U.S.

Trump threatens to expand strikes beyond Venezuela

Ahead of a meeting to discuss the U.S. proposal for peace in Ukraine, Russian President Vladimir Putin dismissed European counter-proposals as 'unacceptable' and said his country was ready for war if Europe wants one.

Putin says Russia is 'ready' if Europe wants war

OpenAI has declared a "code red" as Google threatens to unseat the AI industry's early leader, according to the Wall Street Journal. Technology journalist Jacob Ward joins CBS News to discuss.

California

OpenAI declares 'code red' as Google threatens its AI lead

Russian President Vladimir Putin met U.S. President Donald Trump's special envoy Steve Witkoff and son-in-law Jared Kushner in the Kremlin on Tuesday (December 2) for talks on a possible way to end the deadliest European conflict since World War Two.

Putin meets Trump envoys Witkoff, Kushner for Ukraine peace talks

Secretary of Defense Pete Hegseth said during a Cabinet meeting on Tuesday that the deadly boat strikes in the region near Venezuela and Colombia have "only just begun." This comes as Republicans and Democrats in Congress question the legality of the military action.

Hegseth defends boat strikes near Venezuela during Cabinet meeting

President Vladimir Putin has hailed what his commanders told him was the full Russian capture of the city of Pokrovsk in eastern Ukraine as an important victory after a prolonged campaign, saying it would help Moscow fulfil its wider war aims.

Pokrovsk

Russia claims control of Pokrovsk

Major rescue and recovery efforts are underway across Southeast Asia after a series of severe storms battered the region displacing millions and killing more than 1,100 people.

Nuwara Eliya

Severe storms batter Southeast Asia, displacing millions

Honduras’ presidential race is too close to call, with Nasry Asfura and Salvador Nasralla nearly tied at just under 40% each as technical glitches delay official results.

Tegucigalpa

Asfura, Nasralla in tight battle for Honduras presidency

Airbus must inspect hundreds of its A320 jets for potential quality flaws in the plane's body as a total of 628 aircraft contain panels that may be too thick or too thin due to a manufacturing issue at a supplier.

Blagnac

Airbus to inspect hundreds of A320s for defective panels

U.S. President Trump warns against actions that could ‘interfere with Syria’s evolution’ amid new Israeli incursions and strikes.

Damascus

Syria demands Israel withdraw amid escalating cross-border incursions

The White House confirmed it authorized a second airstrike on an alleged Venezuelan drug boat in September, but denied it ordered everyone on board be killed, which would be considered a war crime.

U.S. authorization of second strike of Venezuelan ship questioned

Monday is World AIDS Day. It has been recognized globally since 1988, but this year, the U.S. government is not commemorating it for the first time.

U.S. not recognizing World AIDS Day this year

Operation "Swamp Sweep," a monthslong immigration crackdown centered in New Orleans, is set to begin Monday. CBS News national reporter Kati Weis has the details.

New Orleans

Immigration enforcement operation set to begin in New Orleans

Luigi Mangione, the man charged with murdering UnitedHealthcare CEO Brian Thompson, was in a New York City courtroom on Monday for a pre-trial hearing focused on what evidence the jury will see. CBS News' Anna Schecter has the details.

New York

Luigi Mangione's lawyers seek to toss evidence in state murder case

West Virginia Gov. Patrick Morrisey said Monday that Andrew Wolfe, the second National Guardsman shot in Washington, D.C., last week, has woken up from an induced coma.

National Guardsman injured in shooting has woken up from coma

Lawmakers are questioning the massive mobilization in the Caribbean as President Trump announced airlines and pilots should consider "the airspace above and surrounding Venezuela to be closed in its entirety." It comes amid new controversy over the strikes on suspected Venezuelan drug boats that has some lawmakers raising questions over whether the Pentagon committed a war crime.

Pentagon 'may have' committed war crime amid questions over drug boats

Steve Witkoff, one of President Trump's key envoys helping negotiate a peace proposal between Russia and Ukraine, is set to meet with President Vladimir Putin in Moscow, the Kremlin says. CBS News' Ramy Inocencio reports.

Breakdown