Bloomberg reports that Apple is in talks with Google (and possibly OpenAI) about a deal to run iPhone AI features through these third-party providers. It’s all sketchy at this point but it doesn’t seem out of the realm of possibility.

Capacity is one of Apple’s big problems in terms of AI. There are just so many iPhones out in the wild that if you add an AI feature requiring any cloud processing, they would have to have massive server capacity to keep up with it.

That’s just one more reason why the on-device model makes sense. However, if there was something they did want to do on the server or make available to their users to be done on a server, they’re going to need help. So the real question would be whether Apple makes that deal or just does AI processing on device.