CNBC’s Deirdre Bosa joins 'Money Movers' to discuss the AI battle for device default distribution.

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

Rise of AI

Perplexity AI is reportedly in advanced discussions with Samsung to integrate its chatbot as the default assistant on future Samsung smartphones. This potential deal would provide Perplexity with significant exposure, as Samsung controls a substantial portion of global smartphone shipments. The move could challenge Google's dominance, as Google currently powers Samsung's built-in voice assistant and is the default search engine on these devices.

The competition for default placement on devices is intensifying among AI companies, with Apple also reportedly exploring integration with Perplexity. Industry experts note that distribution through default settings is crucial for user adoption and monetization, as most users tend to use pre-installed services. This trend reflects a broader shift in the AI landscape, where access to users via device defaults may be more valuable than incremental improvements in AI model performance.

Perplexity AI nears Samsung deal as battle for users heats up

The AI startup Perplexity nearing a deal with Samsung to integrate its chatbot onto phones. Our Deirdre Bosa has that story in today's Tech Check. Morning, De. Hey, good morning, Carl. So, distribution, it's the new AI battleground. A source close to those talks confirms to me that Samsung is close to a wide-ranging deal that would make Perplexity the default assistant on its upcoming devices. Now, this would be a huge win for Perplexity, because in tech, defaults drive behavior. There's a reason that Google has shelled out $20 billion-plus for that pole position in search on Apple and Samsung devices, because whoever owns the defaults wins the users, the data, and ultimately, the market. Now, same goes for AI, and Samsung is a key gatekeeper, controlling a fifth of global smartphone shipments. Locking in that front door, that would give Perplexity a massive runway to train, scale, and monetize at Google's expense. Now, Google isn't just the default search engine on Samsung devices. It also powers Samsung's built-in voice assistant, and it underpins large parts of the Android ecosystem. So, a Perplexity deal, that would threaten to chip away at all of that. Now, it also comes as Apple weighs a similar move in a very rare disclosure during the Google antitrust trial, one of them. Apple's Eddy Cue revealed that the company had begun talks with Perplexity, saying they were impressed with the product and exploring integration. Now, I spoke to Dmitry Shevelenko, that's the startup's business lead, and he told me that they were just as surprised to see Cue go public, because if there's one rule when dealing with Apple, it's this, you don't talk about doing business with Apple. Yet, here was Cue breaking protocol and signaling serious interest. That's a big deal. And this is really where the AI distribution battle starts to take shape. Look at this wall here, this graphic. Open AI is expected to be embedded in Apple's Siri. Apple's Gemini is still baked into Pixel and Samsung devices. Meta's Llama staying in-house, powering its own products and ecosystem that on their own have huge reaches. You've got Elon Musk's XAI, natively platformed on X, may be expanding beyond that also. And then Perplexity, positioning itself on both sides of the smartphone duopoly. So, really, guys, these aren't just tech partnerships, they are distribution pipelines. And in the AI era, they may be even more valuable than model performance itself, because it gets some scale and real monetization. So, how does that feed into the debate, Deirdre, about whether these large language models are increasingly commoditized, or whether it's winner-take-all, or if all of them can do well? So, if they're increasingly commoditized, which I, including many, would argue that they are, it doesn't really matter if yours is a little bit better than the next, if the GPT latest is a little bit better than Gemini's, better than Claude, et cetera. What matters is that people are using them, right, is that people are getting them delivered through their smartphone, or other devices, or through WhatsApp, or Instagram, or Facebook, right? Because that's where the monetization happens, and I think when they become commoditized, users are less likely, most users, right, probably 90 percent are less likely to care what's better at math and coding. They want the one that's easiest to use that's available. And so, winning the smartphone, right, and a Samsung that has a fifth of the global market share, that would be huge for, you know, a relatively smaller player, like perplexity. It goes from a niche player, which people in tech and even finance, they love perplexity, but then it goes into the mainstream, and that's always been Google's big advantage is that reach and that distribution. I was just, you know what I loved, Dee, was the Mary Meeker slide deck I was looking at over the weekend, and she looks at all these foundational tech products over the years. It took the Model T like 2,000 days to get a million users. It took ChatGPT five days, and it's essentially free. Right, it tells you that distribution is key, right, and those were users coming to OpenAI and signing up for a ChatGPT account. I mean, that's a little more friction, a little bit difficult to do than just opening up your Samsung or iPhone and getting delivered the default. That's why default is so important. I mean, it's amazing that OpenAI was able to do that with a brand new product. But now as we enter this next phase, when chatbots go mainstream, what are you getting delivered to your phone that you're already on, that people aren't necessarily seeking out, you know, AI devices? OK, Deirdre, thank you. Deirdre Boussa.

A mass shooting in Anaconda triggers community shock and concern, as witnesses share their experiences and the investigation unfolds amid rising tensions.

Anaconda

Community in shock following deadly shooting in Anaconda

U.S. President Donald Trump said he's ordered his administration to fire the commissioner of the U.S. Bureau of Labor Statistics, on the same day new data was released showing weak job growth in July. The Labor Department also sharply revised job growth for May and June down.

Washington

Trump orders firing of U.S. Bureau of Labor Statistics commissioner

U.S. President Donald Trump says he ordered two nuclear submarines to be positioned in the "appropriate regions" as a response to comments made by Russia's former president. CBS News' Charlie D'Agata reports.

Trump says nuclear submarines moved in response to Russia

Jeffrey Epstein accomplice Ghislaine Maxwell has been transferred to a Bryan, Texas, prison, CBS News confirms. Maxwell was previously held in Tallahassee, Florida.

Bryan

Ghislaine Maxwell transferred to Texas prison

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Ljubljana

Middle East Conflict

Slovenia becomes first EU country to ban arms trade with Israel

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New York

U.S. sanctions Palestinian Authority in growing diplomatic rift

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Kyiv

Ukraine Invasion

Ukraine parliament reverses bill on anti-corruption agencies amid crisis

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Ottawa

Global Tariffs

Trump raises Canada tariff to 35%, grants extension to Mexico

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Jerusalem

Trump's envoy meets Netanyahu for Gaza aid, ceasefire push

U.S. special envoy Steve Witkoff is visiting Israel as more countries join the call to recognize a Palestinian state in September. CBS News' Robert Berger has the latest.

Trump envoy in Israel as Canada joins call on Palestinian statehood

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Trump says U.S. will set 15% tariff on South Korean imports

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Rio de Janeiro

Trump hits Brazil with tariffs, sanctions but key sectors excluded

Widespread damage from tsunami waves after one of the strongest earthquakes ever recorded appears to have been largely avoided. Experts say this event should be used to gauge disaster preparedness for a more serious situation in the future.

Okinawa

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Prime Minister Mark Carney announced that Canada will recognize a Palestinian state later this year if the Palestinian Authority, which governs parts of the West Bank, meets certain conditions.

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Canberra

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Mourners flooded the streets of Birmingham to celebrate the life of rock-and-roll legend Ozzy Osbourne during his funeral procession in the United Kingdom. Mark Savage, a music reporter at the BBC, a CBS News partner, joins with more details.

Birmingham

Ozzy Osbourne fans flood Birmingham streets to mourn late music icon

U.S. President Donald Trump told reporters before departing from Scotland that Jeffrey Epstein poached workers from his Mar-a-Lago spa. Trump mentioned Virginia Giuffre, one of Epstein's most vocal accusers, in his latest remarks.

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Hawaii

Tsunami reaches Hawaii after huge quake shakes Russia's Far East

The U.N. General Assembly brought high-level officials together to promote a two-state solution to the decades-old Israel-Palestinian conflict. Israel and the United States are boycotting the two-day meeting, co-chaired by the foreign ministers of France and Saudi Arabia

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London

UK to recognize Palestinian state unless Israel takes action

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Bogotá

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Russian Security Council Deputy Chairman Dmitry Medvedev posted on social media that President Trump's deadline push for a ceasefire with Ukraine is "a threat and a step towards war."

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