Jac_ob for what they’ve said, it sends info back to the cloud to be processed, and then this info gets sent back to the phone, stored locally and deleted from the cloud.
As a Phone 3a Pro user, this raises some concerns on the possibility of putting use limits, tier pricing or some other stuff. If it would run fully locally, it would be awesome, but maybe the chip has its limitations, I don’t know.
I don’t think they’ll make it usable only with payment because then the 3a series would have a completely useless button. Other phone brands have their own AI stuff fully included (i.e. Samsung) but I could totally expect companies normalizing AI subscriptions for everything in a couple of years.