

The iPhone 16 is rumored to receive significant AI enhancements powered by the M2 Ultra chip, incorporating both on-device and cloud-based processing. Apple's shift towards cloud computing for complex AI tasks, while keeping simpler tasks on-device, marks a change from previous reports that emphasized total on-device AI processing for privacy. This development aligns with Apple's efforts to compete in the AI space, influenced by the rise of technologies like Google Gemini and ChatGPT.