Apple intelligence sets up a new chip war between cloud and edge computing

Apple is launching Apple Intelligence, its new generative AI offering, sparking a competition between on-device (edge) and cloud-based AI computing. This hybrid approach aims to balance privacy, efficiency, and power. Assistant Professor Austin Rovinski explains the trade-offs: "Any time you design a chip, there's going to be a trade off between the amount of performance it can provide and…this energy efficiency that you get." This shift could reshape the AI industry, potentially affecting companies like Nvidia and recasting billions in spending, similar to the earlier desktop versus mobile processor battle.