> I see no real difference between 2 and 3.

This #2, so-called "Private Cloud Compute", is not the same as iCloud. And certainly not the same as sending queries to OpenAI.

Quoting:

“With Private Cloud Compute, Apple Intelligence can flex and scale its computational capacity and draw on larger, server-based models for more complex requests. These models run on servers powered by Apple silicon, providing a foundation that allows Apple to ensure that data is never retained or exposed.“

“Independent experts can inspect the code that runs on Apple silicon servers to verify privacy, and Private Cloud Compute cryptographically ensures that iPhone, iPad, and Mac do not talk to a server unless its software has been publicly logged for inspection.”

“Apple Intelligence with Private Cloud Compute sets a new standard for privacy in AI, unlocking intelligence users can trust.”

You do realise that already happens though? If you read apple's privacy policy they send a lot of what you do to their servers.

Furthermore how private do you think Siri is? Their privacy policy explicitly states they send transcripts of what you say to them. That cannot be disabled.

Most people are happy for (2) already - iCloud Photos, Device backups, iCloud Messages… email.

Those that won’t use those won’t use this either.

Certainly there's a difference. You are right that the jump is big between 1 and 2, but it is negligent to say that Apple, a company which strives for improved privacy and security, and ChatGPT have the same privacy practices.

Apple has demonstrated to be relatively trustworthy about privacy while most AI companies have demonstrated the opposite, so I do see a significant difference.

#2 is publicaly auditable, 100% apple controlled and apple hardware servers, tied to your personal session (probably via the ondevice encryption), i'd imagine ephemeral docker containers or something similar for requests that just run for each request or some form of Encrypted AI Lambdas.

The difference is Apple and OpenAI's privacy policies.

I think that is completely fair.

I think also a bunch of people will trust Apple’s server more (but not completely) than other third parties.

Hopefully they have some toggle in settings for this.