Apple reportedly plans to use next month's Worldwide Developers Conference (WWDC) to highlight its on-device AI capabilities as a competitive advantage, leaning on 15 years of custom silicon expertise to make the case for running AI models locally rather than in the cloud.

People familiar with Apple's plans speaking to The Information say the company is expected to showcase how the chips designed for iPhones, Apple Watches, and Macs give it an edge in processing AI queries directly on devices. While cloud-based processing will remain necessary for complex queries, Apple will position local inference as a privacy-preserving, cost-saving alternative to the massive data center buildouts its rivals have pursued.

As part of its agreement with Google, Apple is apparently set to use a large version of Google's Gemini model to train a smaller, distilled version capable of running locally on Apple hardware. Apple is also said to be scouting acquisitions to help advance its model-shrinking work, with one company it has reportedly considered being Liquid AI, a Massachusetts startup focused on running AI locally on devices.

Some queries will still require cloud processing. Apple is believed to have approved the use of Nvidia's confidential compute technology within Google Cloud to handle processing of the larger Gemini-based model. The security feature encrypts data and AI models during processing, adding a modest performance cost but offering stronger privacy protections.

The arrangement represents a noticeable departure from Apple's original Apple Intelligence announcement, in which the company said all cloud-bound queries would be handled exclusively by its own Private Cloud Compute infrastructure running on Apple silicon. Apple is likely to retain the Private Cloud Compute branding despite the change, people familiar with the partnership told The Information.

There are also said to be material limits to how far Apple can push on-device processing. Google's full Gemini model runs into the trillions of parameters, and The Information claims that Apple has struggled to run it on its own Private Cloud Compute infrastructure, which uses the same Apple silicon chips found in Mac computers.

‌Apple Intelligence‌ was first announced at WWDC 2024, but the rollout has been hampered by a tepid response to initial features and a protracted delay to the more personal version of Siri. Apple is now expected to use WWDC 2026, which runs from June 8 to reframe the narrative, reintroduce the delayed features, and debut new ones.