CNBC's Steve Kovach joins 'Power Lunch' to report on Microsoft latest A.I. unveiling and Google's CEO remarks on the emerging technology.

Seattle

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Microsoft announces new AI features, products

Microsoft taking another step forward in the AI race. Today, detailing plans on how it intends to use chatbots to help its customers. Steve Kovac is here with the details. Oh, goody, chatbots. Yes, more AI, believe it or not. So, Microsoft announcing a slew of new AI features and products today as part of its annual Build Developers Conference. Of course, everything was AI-colored. Big announcement today, Bing will be the default search engine in the Chat GPT app. Now, this is one of the most important things Microsoft wants to do with AI. Expand its search market share against Google. Though, few signs of progress there since announcing the AI-powered Bing just a few months ago. But incorporating into Chat GPT puts Bing front and center in one of the hottest apps right now. Just last week, it came out on the iPhone and is sitting at the top of the App Store. Also, announcing plugins for Bing Chat, rather. Think of these as AI apps that tap into AI's capabilities. Companies like Spotify, Kayak, Instacart, they're all already on board. And then Windows, it's also getting Microsoft's AI co-pilot features. This is coming to Windows 11 very soon. Now, overall, if you're keeping score in the AI race between Microsoft and Google, Microsoft is proving it's still ahead when it comes to actually shipping products. Though, Google did tease several upcoming AI projects at its own Developers Conference a few weeks ago, guys. So, Bing uses Chat GPT. We put some Chat GPT in your Bing and some Bing in your Chat GPT. Is that what it is? And Chat GPT, they're going to have Bing in there. It's all together. And they're calling these plugins. So, basically, the way I think is the easiest to think about it is they're AI apps. So, these third parties, including Bing, can tie into this open AI technology that's partnered with Microsoft and open AI. I'm a first grader at this. What do I use Bing for and what do I use Chat GPT for? In other words, one is purely a search engine. The other is an AI-infused what? Search engine? Exactly. The way they're pitching. So, for the chatbot part of it, it's basically think of it as a tool to help you do something. I need to write an essay. I need to come up with ideas for a kid's birthday party. I need to go on a trip. Help me come up with ideas for that. Also, sometimes, you've probably used Chat GPT before, it doesn't always give you results directly from the web. So, you might want to say, okay, what does the rest of the Internet have to say about this? I heard from Chat GPT, well, Bing is going to now be the default search engine for that. In theory, Google can build itself into this too, but right now, Bing is going to be the default because of that relationship with Microsoft. Okay. You also read a little bit of the kind of competitive landscape into Sundar Pichai's very vocal, I mean, he was on 60 Minutes, now he's got the FT op-ed about building rules for AI. Just talk to us a little bit about that and is it in some ways his attempt to say, okay, we might not have been first, but we're going to get everyone's stamp of approval or something? You could read into it that way, but he's also mimicking a lot of the messaging that we heard from Sam Altman on Capitol Hill last week that we've heard from Satya Nadella, the CEO of Microsoft. They're all asking for regulation. Whether or not they believe they want it, I don't know if that's true. They are, but what is true, they're plowing ahead. I know Senator Ted Cruz was on Squawk Box today, and he's one of the people who are going to be making the decisions how to regulate these things. He effectively says we don't know. I mean, I talked to him off camera for a little bit, and he was like, this is out of our hands, and no one knows what they're doing right now. And that was very blunt from the senator. I also think of Section 230. I mean, we always talk about, oh, what we did or didn't do with social media. Well, even the legislation at the heart of the rise of the Internet and social media continues to be controversial today. So it just feels to me like they should wait to be very sure what kind of legislation they want before moving ahead with it. I understand people say you can't wait, but there's a bigger danger in doing this wrong, I would think, than in not doing it at all. Yeah, exactly. It's also a chicken and egg problem because we don't know what this technology is going to be capable of a year from now, let alone 10 years from now. So how do you regulate something you can't foresee? At the same time, again, these companies are plowing ahead. That's why you hear some people, let's pause, pump the brakes for a second, figure out where we're going first, and then figure out the path forward. But that's not what's happening. No, we like to keep that foot on the accelerator 100 miles. Ready, fire, aim is what they're doing. Thank you, Steve, or Steve Kovach.

The funeral proceedings of the late football players Diogo Jota and his brother Andre Silva took place in the church of Gondomar in their hometown in the east of Porto. Family members, teammates and coaches joined thousands of mourners to pay their final respects.

Gondomar

Thousands gather to bid farewell to Liverpool's Diogo Jota

McMahon's most recent projects included Netflix's whodunit "The Residence" and the Nicolas Cage drama "The Surfer," which premiered earlier in the year at SXSW.

Melbourne

Australian-American actor Julian McMahon dies, 56

Diplomatic efforts are ongoing as U.S President Donald Trump looks to secure a ceasefire deal between Israel and Hamas. Israel has previously accepted the US proposal, meanwile Hamas has "submitted a positive response" to the mediators.

Doha

Middle East Conflict

Israeli hostage negotiation team to fly to Doha to hold talks with Hamas

A forestry worker injured in a wildfire in the western Turkish province of Izmir has died from his injuries, raising the death toll in recent days from the fires to three, as emergency crews also continued to battle a blaze in a province bordering Syria.

Hatay

Turkiye’s wildfires declared national emergency

Search and rescue operations continued overnight after flash floods slammed central Texas, killing dozens, officials said. More than 20 children are still missing from Camp Mystic, an all-girls camp hit by the floods, the Kerr County sheriff said.

Kerrville

Rescues continue in central Texas after deadly flash floods

Officials in the U.S. state of Texas say at least 13 people have died in overnight flash floods after torrential rains triggered an overflow of the Guadalupe River. Nearly 20 children attending a summer camp in the south-central area are missing.

Kerr County

Deadly Texas floods: Search efforts underway for missing children

Türkiye has been battling wildfires for more than a week, with its western province of Izmir among the hardest hit. Thousands have been forced to flee as flames threaten homes and villages.

Ödemiş

Turkiye wildfires: At least two dead as fires burn for eighth day

It was not clear if Hamas’ statement meant it had accepted the proposal from US President Donald Trump for a 60-day ceasefire.

Jerusalem

Hamas says it is  'positive' about latest ceasefire proposal

President Trump brought pomp and circumstance to his signing of the "big, beautiful bill" on Friday, with an Independence Day ceremony at the White House that included a B-2 bomber flyover.

Washington

Global Tariffs

Trump signs "big, beautiful bill" as tariff deadline looms

Heavy rainfall in central Texas caused the Guadalupe River to overflow and unleash a torrent of water. The bodies of at least 13 children and adults have been recovered and more than 20 girls are missing from a sleepaway camp.

Floods kill at least 13 in Texas, over 20 missing from summer camp

The talk comes a day after President Donald Trump and Russian President Vladimir Putin discussed Ukraine, Iran and other issues in a call the Kremlin described as "frank and constructive."

Kyiv

Ukraine Invasion

Zelenskyy, Trump agree on joint defense efforts in phone call

Russia pummeled Kyiv with the largest drone attack of the war, injuring at least 23 people and damaging buildings across the capital only hours after U.S. President Donald Trump spoke with Russia's Vladimir Putin, officials said.

Russia hits Kyiv with largest drone attack after Trump-Putin call

U.S. President Donald Trump marked the passage of the new spending bill, which includes changes to food assistance, student loan programs, and clean energy credits. Robert Costa joins "CBS Mornings" to break down what's in the legislation.

Trump set to sign "big, beautiful bill"

More than 80 Palestinians were killed in Gaza on Thursday (July 3), according to health officials, as Israel intensified its strikes, hitting a school-turned-displacement facility. CNN’s Paula Hancocks looks at the damage and humanitarian toll.

More than 80 people killed in Gaza in one day

Ukrainian President Volodymyr Zelenskyy said Kyiv will do "anything" to advance EU accession talks. Zelenskyy spoke alongside Danish Prime Minister Mette Frederiksen, President of the European Council António Costa and President of the European Commission Ursula von der Leyen.

Ukraine will do 'anything' to advance EU accession talks: Zelenskyy

President Donald Trump said Washington will start sending letters to countries on Friday specifying what tariff rates they will face on imports to the United States, a clear shift from earlier pledges to strike scores of individual deals.

Trump: Letters telling countries their tariff rate going out Friday

Indonesian rescuers on Thursday (July 3) temporarily halted a search for 30 people still missing after a ferry carrying 65 people sank near the island of Bali with the loss of six lives, the national search and rescue agency said.

Gilimanuk

Indonesia suspends search for 30 missing after ferry sinks near Bali

After marathon debate sessions in the Senate and House, President Donald Trump’s budget bill passed in the House. Republicans secured the biggest win of Trump’s presidency.

Trump’s landmark ‘big, beautiful bill’ narrowly passes U.S. House

Florida says the first group of migrant detainees have arrived at the new immigration detention center known as "Alligator Alcatraz." CBS News correspondent Shanelle Kaul has more.

Ochopee

First group of detainees arrive at "Alligator Alcatraz," Florida says

U.S. President Donald Trump said Thursday (July 3) that he spoke with Russian President Vladimir Putin and that he plans to hold a call with Ukrainian President Volodymyr Zelenskyy. CBS News White House reporter Willie James Inman has more.

Trump speaks with Putin, plans call with Zelenskyy

CNN’s Priscilla Alvarez reports on a lawsuit from lawyers for Kilmar Abrego Garcia alleging he suffered “torture and mistreatment” after he was wrongfully deported and held in El Salvador’s notorious mega prison.

Tecoluca

Kilmar Abrego Garcia claims he was tortured in El Salvadoran prison

The Kremlin welcomed the development, with spokesman Dmitry Peskov claiming it proves Western arsenals are being depleted and predicting that less aid will hasten the end of the conflict.

U.S. pauses military aid to Ukraine over depleted weapons stockpile

Two contractors employed by UG Solutions spoke to the AP on condition of anonymity as they were revealing their employers’ internal operations.

U.S. contractors say live ammo used at Gaza aid distribution site

Democratic leader Hakeem Jeffries spoke for hours on the House floor about potential impacts of President Trump's "big, beautiful bill" that Republicans are looking to pass before July 4. Following debate, the House is set for a final vote on the massive budget bill.

House debates Trump's 'big, beautiful bill' ahead of final vote

CBS News political contributor Caroline Polisi joins "CBS Mornings" to break down the jury's verdict in Sean "Diddy" Combs' federal trial and the judge's decision to deny bail for the music mogul ahead of his sentencing.

Manhattan

Sean "Diddy" Combs denied bail after split verdict

Liverpool soccer player Diogo Jota has died aged 28, just weeks after marrying his childhood sweetheart. The footballer passed away in a car crash in northern Spain.

Madrid

Liverpool soccer player dies in car crash 10 days after wedding

The Pentagon said that U.S. strikes 10 days ago had degraded Iran's nuclear program by up to two years, suggesting the U.S. military operation likely achieved its goals despite a far more cautious initial assessment that leaked to the public.

Tehran

Iran nuclear program degraded by up to two years: Pentagon

Days before his 90th birthday, the Dalai Lama announced the Gaden Phodrang Trust, a non-profit he founded, will have the sole authority to recognize his future reincarnation, but China insists it will choose the successor of the Tibetan spiritual leader.

Lhasa

China rejects Dalai Lama’s succession plan

The U.S. Congress inched towards approving President Donald Trump’s Big Beautiful Bill, despite attempts by Democrats to stop it. The bill is Trump’s signature legislation which includes massive spending increases on the military and immigration enforcement while slashing social programs.

Trump’s Big Beautiful Bill nears approval

Sean (Diddy) Combs was found guilty on prostitution-related charges, but was acquitted on more serious charges of racketeering and sex trafficking giving him a maximum sentence of 20 years. But the courtroom victory was subdued following a judge’s ruling to deny him bail.

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Rise of AI