Where Apple Intelligence Runs in iOS 27: On Device, in Private Cloud Compute, and Nowhere Else Apple Names

Apple iPhone 18 Pro Photos app Apple Reference Image
Image: Apple

Apple names two places where Apple Intelligence work happens in iOS 27: on the device itself, and on Apple servers through Private Cloud Compute. Across the consumer pages Apple published for this launch, no user-facing feature is described as being handed to another company’s model.

Apple iPhone 18 Pro A20 Pro chip
The A20 Pro and its dual 16-core Neural Engine handle the on-device half of Apple Intelligence. Image: Apple

iOS 27 arrives as a free update on Monday, September 14, and Apple Intelligence switches on with it for supported devices. The closest thing Apple publishes to a list of which requests leave your iPhone is a footnote about daily usage limits, and it is worth reading in full before assuming anything about the rest of the features Apple announced on September 9.

Key facts

ItemWhat Apple publishes
Processing locations namedOn device, and on servers through Private Cloud Compute
Server model term Apple uses“AFM 3 Cloud models,” in a footnote about Shortcuts
Features Apple lists as server-sideSiri AI, intelligent photo editing tools, Image Playground, AFM 3 Cloud models in Shortcuts
Apple’s claim for server processingPersonal data “is not stored nor made accessible to Apple or anyone else”
Third-party models named for consumer featuresNone on the consumer pages Apple published
iOS 27 releaseMonday, September 14, 2026, free
Apple iPhone Duo Siri AI
Siri AI, shown on iPhone Duo. Apple lists it among the features that rely on server-side models. Image: Apple

The two places Apple names

Apple describes its next-generation Apple Foundation Models as running on device and on servers through Private Cloud Compute. For the server side, the published wording is that personal data “is not stored nor made accessible to Apple or anyone else,” and that “outside experts can continue to verify this privacy promise at any time.”

Don’t miss the best of The Mac Observer

Set us as a preferred source and our Apple reporting ranks higher in your Google Search results and Discover feed — one tap, no account changes.

Or get it by email

On the device side, the published signal is hardware. Apple restricts some models to newer silicon: Siri voice customization and the improved on-device Dictation model are listed for iPhone 18 Pro, iPhone 18 Pro Max, iPhone Duo, iPhone 17 Pro, iPhone 17 Pro Max and iPhone Air, an iPad with M4 or later and 12GB of unified memory, a Mac with M3 or later and 12GB, or an Apple Vision Pro with M5. The A20 Pro in the iPhone 18 Pro carries a dual 16-core Neural Engine, which Apple says doubles the AI processing of the A19 Pro.

Apple iPhone 18 Pro Photos app Apple Reference Image
Apple Reference Image is the one feature Apple ties to Private Cloud Compute by name. Image: Apple

The footnote that doubles as a server-side list

Apple’s own words, on the Apple Intelligence page and the OS pages: “Certain Apple Intelligence features that rely on server-side models are subject to daily usage limits, including but not limited to Siri AI, Intelligent Photo Editing Tools, Image Playground, and AFM 3 Cloud models in Shortcuts.”

Two details there matter. The first is “including but not limited to,” which means the list is explicitly incomplete. The second is the term “AFM 3 Cloud models,” which appears in a consumer footnote and is defined nowhere Apple publishes for consumers.

The same footnote adds that limits “may vary by feature, request complexity, system demand,” and that “expanded access to such features will be available for a fee in the future.”

The one feature Apple maps precisely

Apple Reference Image is the exception. Apple says secure, pixel-level signing of photo data happens at the time of capture, and its announcement describes the phone capturing signed sensor data that Private Cloud Compute develops into an unalterable reference image, kept alongside the edited versions. It is the only iPhone 18 Pro camera feature Apple ties to a named processing location.

Where a third party does appear

Apple does name outside models in this cycle, in one place. Xcode 27, its developer tool, uses Anthropic, Google and OpenAI models for agentic coding. That is software for building apps, and Apple does not connect it to Apple Intelligence running on a customer’s device.

The other developer note involves Apple’s own servers rather than another company: Apple says developers in its Small Business Program can use the Foundation Models framework on Private Cloud Compute at no cloud API cost. On Apple Watch, Apple’s support document for Audio Intelligence says those features use “on-device and cloud-based AI models” and names no provider.

FeatureWhere Apple says the work happensApple’s wording
Apple Reference ImagePrivate Cloud ComputeSigned sensor data that Private Cloud Compute develops into an unalterable reference image
Siri AI, Image Playground, photo editing toolsServer-side models“Subject to daily usage limits”
Improved Dictation, Siri voice customizationOn device“Advanced on-device model,” newer hardware only
Audio Intelligence on Apple WatchBoth“On-device and cloud-based AI models”
Xcode 27 agentic codingThird-party modelsAnthropic, Google and OpenAI models, for developers

What Apple has not said

There is no per-feature map of what stays on the iPhone 18 Pro and what does not. Apple has published no statement about which part of a Siri AI request is handled locally, no retention period for anything sent to Private Cloud Compute, and no definition of “AFM 3 Cloud models.” The paid tier is confirmed in wording only: no price, no date, and no statement about whether paid requests are handled any differently from free ones.

iOS 27 ships on Monday, September 14. Apple publishes a security content page for each release through its security releases index, and no iOS 27 entry is listed there yet. That page is the most likely place for a fuller description to appear. Our iOS 27 release date guide covers what else lands that day.