Apple Bets on On-Device AI to Sidestep Data-Center Risks

Apple is set to unveil on-device AI capabilities at next month’s WWDC, leveraging 15 years of custom silicon to run models locally on iPhones, Watches and Macs. The move follows George Hotz’s May 25 warning that AI coding agents risk degrading software quality at firms like Apple. While Microsoft projects $190 billion in data-center capex, Apple’s edge-first strategy positions its device ecosystem as a potential winner if on-device AI gains traction among developers.