How does the three-tier architecture work?

Tier 1: on-device handles 70% of tasks (data stays local). Tier 2: PCC secure cloud for medium tasks (stateless, encrypted). Tier 3: Gemini for complex tasks (privacy scrubbed before sending).

Why did Apple choose partnership over continued in-house development?

Ajax cost $10B+ but trails GPT-4 by ~18 months, Gemini by ~12 months. Weak multilingual, privacy-limited training data, core researcher attrition.

What antitrust risks does the deal face?

FTC: Google gains world's largest AI distribution via Apple's 1.5B+ devices. EU DMA: 18-month exclusivity may violate Article 6 self-preferencing ban.

— AI DAILY

Sources

AI Apps