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As the author of the Music Modernization Act (MMA), I am thrilled with the benefits it has provided music creators and music streaming services. Rarely does Congress come together in a bipartisan, bicameral way to respond to a market problem with a comprehensive, collaborative and business-driven solution.
The bill updated copyright law for the digital generation, and the cornerstone of the legislation — the creation of the Mechanical Licensing Collective (MLC) — has been a shining example of an industry working together to solve major market challenges. However, recent attempts by streaming services to redefine the original intent of the statute, to benefit themselves, are concerning and must be corrected.
The MLC was created to solve a massive music industry problem. Streaming services often failed to find the correct copyright owners and therefore held on to large sums of money owed to songwriters and music publishers. This both kept earnings from rightful owners and also opened streaming services up to large amounts of liability — from which lawsuits were piling up, costing them hundreds of millions of dollars. Both sides had a major incentive to find a better way forward.
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Along with my colleague, Congressman Hakeem Jeffries (D-NY), I authored a bill to establish a company that would be funded by the digital streaming companies, and governed by copyright owners, which would receive all of the streaming mechanical money owed and then distribute that money based on copyright ownership. The company would also operate a first-of-its-kind public database so that song ownership information would be more transparent than ever.
To create the MLC, the U.S. Copyright Office held an impartial designation period where anyone could campaign to run the company. A coalition representing the vast majority of the music publishing and songwriting industry came together and was selected.
In five short years, the MLC was activated and is now a towering example of success. It has distributed over $2 billion in royalties to publishers and songwriters. It has a match rate of over 90%. It operates the most accurate, open database of music rights information in the world.
Crucially, as the MLC is responsible for ensuring accurate payments to its songwriter and publisher members, the MMA made clear that it not only has the authority but is mandated to enforce the rights of its members if it determines any streaming service is not reporting or paying properly. Most recently, the MLC was forced to litigate against Pandora for underpaying royalties.
Unfortunately, this has led DiMA, which represents the major streaming companies and has a seat on the MLC’s board, to attempt to reinterpret the original intent of the MMA. They are pushing the misguided idea that the MLC was meant to be “neutral” when it comes to enforcing the rights of copyright owners. Nothing could be further from our objective.
This definition of neutral is simply another way to take the voice away from those who have struggled to be heard when it comes to receiving what they are owed for their labors. This was never the intent.
Should the MLC not enforce and litigate when necessary to uphold the rights of its members, those members would have absolutely no recourse to defend their property rights. This notion of neutrality would make the MLC toothless and completely undermine the important role of the Collective. Allowing the MLC to dole out royalties is inextricable from its primary purpose of ensuring those royalties are correct.
It is a perversion of the legislation to attempt to convince current lawmakers that the MLC was meant to give equal weight to the opinions of the digital companies as the rights of songwriters. Of course, there is a massive incentive for DiMA and its membership to want the MLC to relinquish its role as enforcer of music creators’ copyrights. Billions of dollars in royalties are on the line.
The streaming services’ vision of a neutral MLC is not in line with the original intent of the MMA, and they know it because they were intimately involved in the lengthy negotiation of the language of the bill. The resulting legislation was fair and allowed for the collective and the courts to do their jobs when it comes to disputes.
The five-year milestone since the MMA was signed into law is an important time for reflection and refining. However, it is not a time to redefine the most important music legislation of our time.
Doug Collins is a lawyer and former Member of Congress representing Georgia’s Ninth Congressional District. He served as Ranking Member of the House Judiciary Committee as well as Vice Chairman of the Subcommittee on Courts, Intellectual Property, and the Internet. He introduced the Music Modernization Act along with the bill’s lead cosponsor, Rep. Hakeem Jeffries (D-NY).
Ariana Grande and HYBE, led by CEO Scooter Braun, look forward to continuing their long-standing business partnership and pursuing creative opportunities in Weverse and REM Beauty, according to representatives for the superstar and global company. Grande in this new chapter will continue to be managed exclusively by Brandon Creed and his Good World Management, to […]
On Tuesday (June 11), the Association of Independent Music Publishers (AIMP) held its annual global music publishing summit at 3 West in New York. Boasting panels on a wide-ranging list of publishing hot topics, from fraud to film/TV synchronization, the one-day event featured executives from ABKCO, Rimas Publishing, Spirit Music Group, Warner Chappell, CD Baby, Pex and more.
One highlight of the day included the panel Opportunities Abroad: Maximizing Overseas Collection featuring Michael Simon (Harry Fox Agency), Alexander Wolf (SESAC International), David Alexander (MusicIndustry.Africa), Mark Chung (Freibank Music Publishing, IMPF) and Tomas Ericsson (AMRA).
During the panel, the experts, who hail from around the world, discussed the increasingly globalized music market, which regions hold the most value and how to maximize that value. “It can’t be like it was in the 90s,” said Simon. “Back then the answer was to sit back and wait for checks to arrive in your mailbox — that world seems to be disappearing.”
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Some experts stressed the importance of leaning on sub-publishers with local knowledge to ensure proper collections. Ericsson, whose company AMRA collects digital royalties on a worldwide basis, explained that using AMRA can also be a solution to pain points in collection worldwide because “the majority of societies do not have the capital incentives to invest in better technology and therefore use whatever means they have to process this money to others.”
“My bet is on Asia,” said Wolf of the region with the most untapped potential for publishers. “They’re knowledgeable, and they’re making money… Africa as a continent is more troubled. Countries like Nigeria are especially great countries, great musicians but in the last thirty years, Nigeria had seven different collection societies. There is value there, but we need patience.”
The AIMP event coincided with what’s known as New York Music Month (NYMM) — a collection of events across the five boroughs to support the city’s local music scene. Though the festivities continue throughout the entire month, the bulk of NYMM events happen the week of June 10-15. In the publishing business, the annual gathering is fondly known as “Publishers’ Week” or “Songwriters’ Week” in reference to events like AIMP, the National Music Publishers’ Association’s annual meeting and the Songwriters Hall of Fame — all of which take place in the same five-day period. Others also call it “Indie Week,” a reference to the Association of American Independent Music’s five-day conference of the same name.
This is The Legal Beat, a weekly newsletter about music law from Billboard Pro, offering you a one-stop cheat sheet of big new cases, important rulings and all the fun stuff in between.
This week: Young Thug’s trial in Atlanta descends into chaos as the judge orders the rapper’s lawyer thrown into jail; Bad Bunny’s battle with Major League Baseball players’ union gets messier; Madison Square Garden bans a Phish fan over the “first bong hit” at the Las Vegas Sphere; and much more.
THE BIG STORY: Young Thug Trial Goes Off The Rails
Young Thug’s gang trial in Atlanta was already in uncharted territory – it’s now the longest trial in Georgia state history, with dozens of witnesses still scheduled to testify and no clear end in sight until 2025. But on Monday (June 10), it crossed over into the realm of the truly bizarre. It started when Young Thug’s attorney, Brian Steel, said he had learned of an allegedly improper secret meeting between Judge Ural Glanville, state prosecutors, and a key witness. It ended with Steel being escorted into custody by a court officer. In between, the attorney and the judge engaged in an extraordinary back-and-forth — broadcast across the internet in real-time — over illegal leaks, witness coercion, and potential jail time. “I’m going to give you five minutes. If you don’t tell me who it is, I’m going to put you in contempt,” Glanville said at one point. “I don’t need five minutes,” Steel fired back. When the dust settled, Glanville had sentenced Steel to 20 days in jail, to be served over 10 consecutive weekends. Capping off the surreal proceedings? Steel demanded to serve that time in jail right alongside Young Thug, who has been locked up for two years as the case drags on. Go read our full story here, and stay tuned at Billboard for more developments — Steel has already filed an appeal, and something tells us this isn’t the last we’ll hear about that secret meeting…
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Other top stories this week…
BAD MONEY? Major League Baseball’s players’ union fired back hard at a lawsuit claiming it had discriminated against Bad Bunny’s sports agency Rimas Sports — explaining (in great detail) how the company had, in fact, been penalized due to “egregious and systemic” violations of union rules against offering gifts to prospective clients. According to the union, those illegal “inducements” included a $200,000 interest-free loan to one ballplayer, and VIP tickets to Bad Bunny concerts to others. PHISH FUED – A Phish fan who bragged about taking the “first bong hit to ever be ripped” in the Las Vegas Sphere — and posted a viral video of him doing so — received a letter from Madison Square Garden Entertainment’s lawyers permanently banning him from the venue and all other MSG facilities. Though MSG initially stuck by the decision, the company later backtracked after the story made headlines: “There was a breakdown in our process due to a change in personnel which resulted in the letter being sent inadvertently,” said a Sphere Entertainment spokeswoman in a statement. “This customer is not banned from our properties.” KBJ x QUEEN BEY – When the U.S. Supreme Court’s nine justices released their annual financial disclosures, Justice Ketanji Brown Jackson reported a cooler-than-usual line item: that Beyoncé had personally gifted her four concert tickets. ‘ALRIGHT, ALRIGHT, ALRIGHT’ – Travis Scott asked a federal judge to end a copyright lawsuit accusing him of using unlicensed samples on Utopia and Astroworld from “Bitches Reply,” an oft-sampled 1992 track that’s previously been used by Lil Wayne, Cardi B, Kid Cudi and others. In their filing, Scott’s lawyers argued the only material the rapper allegedly copied were the words “alright, alright, alright” — and that such “stock phrases” do not have “even the minimal creativity required for copyright protection.” MADONNA CASE *NOT* SETTLED – A bizarre exchange took place in one of the several lawsuits filed against Madonna over claims that she broke the law by delaying the starts of her concerts. Days after news of a settlement was filed in court by the plaintiff’s attorneys, lawyers for Madonna and Live Nation emphatically denied that any such deal had been reached and told a judge they “will not be harassed into settlement.” The case remains very much pending. MOTOWN SINGER SUES HOSPITAL – Alexander Morris, the current lead singer of the legendary Motown group The Four Tops, is suing a Detroit-area hospital over allegations that staffers “assumed he was mentally ill” and put him in a straitjacket after he informed them that he was a famous musician. Morris claims he was sent for a psychiatric evaluation and deprived of necessary treatment for his heart infraction — until, that is, his wife showed up and staffers watched a video of him performing at the Grammys. COUNTERFEIT COUNTERATTACK – With the problem of bootleg music merch continuing to grow, Billboard’s Steve Knopper chatted with two companies that are fighting back using technological weapons like artificial intelligence, image-matching software and automated takedown notices.
After LANY completed its four-album deal with Interscope early last year, the Los Angeles pop-rock duo decided to be an independent act.
“You’ve built your career on a major [label] model, and you’re like, ‘We’ve got what we’re going to get out of the system – let’s get back some control,’” says Rupert Lincoln, the band’s manager.
LANY had a big following, and multiple streaming hits, including 2018’s “Malibu Nights,” which has more than 403 million Spotify plays, and the 2020 album mama’s boy, which hit No. 7 on the Billboard 200. But without a label, the band needed help – and money – to market music and shows to its fanbase.
So Lincoln and the band talked with some of the many distribution companies now vying for independent artists’ business with advances and marketing services. They selected Stem Disintermedia, founded nine years ago by United Talent Agency veteran Milana Rabkin Lewis and which a year ago secured $250 million in credit for artist advances from Victory Park Capital.
LANY self-financed a new album, last year’s a beautiful blur, with help from Stem and Virgin Records, its label for international territories. The band made a deal with Stem to handle marketing and promotion. “Stem made an investment,” says Seth Faber, the distributor’s general manager, adding that LANY took “a few advances along the way to fund different aspects of the project.” Stem set up a TikTok marketing campaign, taking advantage of the social-media giant’s commercial music library, which allows new and indie artists to make their tracks available for brands to use in video clips. Then Stem and Lincoln pooled their radio connections and pushed “XXL” onto iHeartMedia and SiriusXM playlists.
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Stem launched a TikTok campaign, and fans shared footage from the band’s fall tour in Asia, helping “XXL” hit No. 46 on the TikTok Billboard Top 50 last September. Then the company took the track to radio — “shook hands, kissed babies,” according to Faber — and peaked at No. 26 on Pop Airplay in February. “Considering what we were going up against, major labels and their pockets, it’s a pretty good magic trick to pull off,” Faber says. The band performed on Jimmy Kimmel Live! and Today in the fall, and its U.S. spring tour was in clubs and theaters. “XXL” has 14 million Spotify plays and more than 3 million YouTube views.
“The splits are very favorable with Stem,” says Lincoln. “We felt incredible support from the top down.”
Stem began as a typical indie distributor, helping artists to put out physical and digital music and seeing to it they received their streaming revenue. After working with top indie artists and labels, from Frank Ocean for his Blonde album to Big Loud Records, home of Morgan Wallen, Stem pivoted to a new model in 2020, emphasizing advance artist payments; last year, it spun off a new company, Tone, to “modernize the music industry’s financial infrastructure,” as Lewis said earlier this year.
Stem is one of many indie distributors that does not require artists to give up long-term rights to their master recordings in exchange for advance payments — DistroKid, CD Baby, Create Music Group and Secretly Distribution operate a similar way, simplifying the process of putting artists’ music out and helping to arrange timely royalty payments. But what distinguishes Stem, according to Faber, is the ability to “add value” to artist deals by emphasizing major-label-style promotion and marketing campaigns. Instead of distributing numerous artists, Stem selects acts, like LANY, who have track records of sales success and potential for high-quality new material.
Using this model, Stem works with indie labels such as Quality Control and artists such as R&B singer Brent Faiyaz, who received eight advance Stem checks to make his album Wasteland. Artists signed to Stem borrow what they need for music videos or digital-marketing campaigns, negotiating terms as they go along. “Now that we have the bandwidth to focus on a lower volume of more meaningful acts, all these acts get the human touch,” Faber says. “Our approach requires artists that see the big picture and are not just chasing the largest check that they could find — and are looking to make smart and calculated investments in themselves.”
Jim Caparro, a former Warner and Island Def Jam CEO who ran Polygram Group Distribution in the ’80s, says most artists don’t need a major label or even a major distributor, such as Warner Music-owned ADA or Universal Music-owned Virgin Music Group, to serve their fanbase with new music and social-media marketing. Artists like LANY, who’ve established themselves on major labels, simply need up-front money for recording projects and radio connections.
“It’s a matter of advances: Who can write the biggest check?” Caparro says. “Artists can do it themselves. They really don’t need all those partners to share their royalties with.”
Lincoln, who runs Hills Artists in Los Angeles and London, praises Stem for giving LANY a pathway to radio connections, including top execs at iHeartMedia and SiriusXM, which will undoubtedly be useful for future single releases. He also emphasizes that Stem’s success with LANY is due to a collaboration between the distributor and the management company. “It’s been a really great partnership so far,” he says. “Autonomy is the future of the business.”
Spotify will introduce a new tier later this year for users who want high-fidelity audio and access to additional playlisting tools, Bloomberg reports. Those extra features will come at a cost: At least $5 extra per month, according to Bloomberg. This follows the streamer’s June announcement that the cost of Spotify’s premium individual and duo […]
Natalia Lafourcade has signed with UTA for worldwide representation in all areas, Billboard can exclusively announce. The signing follows the Mexican artist’s latest Grammy win for De Todas Las Flores, which won best Latin rock or alternative album. The critically-acclaimed set also collected three awards at the Latin Grammys last year, including best singer-songwriter album. […]
The lead singer of Motown group The Four Tops is suing a Detroit-area hospital over allegations that staffers “assumed he was mentally ill” and put him in a straight jacket when he informed them that he was a famous musician.
In a complaint filed Monday in Michigan federal court, singer Alexander Morris claims that when he visited the emergency room at Ascension Macomb-Oakland Hospital in April 2023 with difficulty breathing and chest pain, he was both racially profiled and unfairly treated as if he was “delusional.”
Even though he was showing “clear symptoms of cardiac distress” and had a history of such problems, Morris says that staffers removed him from oxygen support and ordered a psychological evaluation after he “revealed his identity as a celebrity figure.” When he offered to prove his identity, Morris says a white security guard ordered him to “sit his Black ass down” and physically restrained him.
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“Plaintiff had a valid identification on his person and could easily have been identified as a singer in the Four Tops group,” attorneys for Morris’ write. “Defendant hospital … blatantly refused to provide plaintiff with medical treatment due to his race and/or perceived mental disability.”
Eventually, Morris says, his wife arrived and learned “that the doctors thought he was delusional.” When he was able to show a nurse a “video of him performing at the Grammys,” he says the hospital finally agreed to cancel the psych evaluation. He was ultimately diagnosed with heart infraction – and offered what he says was an insulting mea culpa.
“Plaintiff was offered a $25.00 gift card to Meijers as an apology for the dehumanization and discrimination he faced at the hands of the hospital,” the singer’s attorneys write. “He refused to accept the gift card.”
Founded in the early 1950s, The Four Tops roared to widespread success in the 1960s and fueled the rise of the growing Motown record company. The original lineup, consisting of Levi Stubbs, Abdul “Duke” Fakir, Renaldo “Obie” Benson and Lawrence Payton, stuck together for more than 40 years and are enshrined in the Rock and Roll Hall of Fame. Fakir is the sole original member still in the group.
Morris, who joined the group in 2019, had already publicized his alleged ordeal in the past. Last spring, he threatened to sue over the alleged incident, claiming that it would have taken “two minutes” to verify his identity: “My health should’ve been first.”
In a statement to Billboard on Tuesday, a spokesperson for hospital owner Ascension said the company was “unable to provide details on cases under investigation.”
“The health, safety and well-being of our patients, associates and community members remains our top priority,” the spokesperson said. “We remain committed to honoring human dignity and acting with integrity and compassion for all persons and the community. We do not condone racial discrimination of any kind.”
LaTrice Burnette has been appointed to the newly created post of executive vp/head of music at UnitedMasters. In this role, Burnette will helm the artist services division for the software and services platform’s global roster of independent artists.
In announcing the appointment, UnitedMasters founder and CEO Steve Stoute said, “LaTrice brings with her a wealth of experience by having played every single position inside a record company, from assistant to president. Every artist that I’ve spoken to that she has worked with has had nothing but great things to say about her keen understanding of the industry, of marketing and helping them grow their careers. With our artist services business at UnitedMasters, having somebody like LaTrice on board, with her level of experience, is going to do nothing but help make our artists go further in their careers. This is another big move for us and our commitment to independent artists.”
In addition to Stoute, Burnette will be working alongside vp of music/head of A&R Mike Weiss and vp of music & marketing David Melhado. “I’m beyond excited to join the UnitedMasters team to help drive the next phase of growth for their global independent artist community,” said Burnette. “Having worked with so many amazing artists throughout my career, I’ve seen firsthand the increasing desire for independence while still receiving top-level label services. UnitedMasters has pioneered a model that gives artists the best of both worlds. I’m looking forward to collaborating with the UnitedMasters team to elevate artist development to new heights and empower the next generation of artists to own their futures.”
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Burnette most recently served as executive vp at Def Jam Recordings before joining UnitedMasters. Her more than two decades of music industry experience also include senior executive posts at Island Records, Epic Records, Atlantic Records and Roc-A-Fella Records. During that time, she’s worked with a host of star talents such as Jay-Z, 2 Chainz, Pusha T, Yo Gotti, Travis Scott, Future, Muni Long and DJ Khaled. Burnette also brings marketing experience to her new role, having contributed to strategic partnerships and campaigns with brands like Diageo and the WNBPA (Women’s National Basketball Players Association).
Over the last three years, UnitedMasters has signed partnerships with Brent Faiyaz and Earthgang, among others. It has also expanded internationally through foundational partnerships with artists such as Davido and Sarz in Nigeria; Veigh, Nagalli, and Supernova in Brazil and FloyyMenor and Nickoog in Chile. With over 2 million artists on its platform, UnitedMasters also has brand partnerships with Diageo, Ally and ESPN.
Apple has jumped into the race to bring generative artificial intelligence to the masses, spotlighting a slew of features Monday designed to soup up the iPhone, iPad and Mac.
And in a move befitting a company known for its marketing prowess, the AI technology coming as part of free software updates later this year is being billed as “Apple Intelligence.”
Even as it tried to put its own stamp on technology’s hottest area, Apple tacitly acknowledged during its World Wide Developers Conference that it needs help catching up with companies like Microsoft and Google, which have emerged as the early leaders in AI. Apple is leaning on ChatGPT, made by the San Francisco startup OpenAI, to make its often-bumbling virtual assistant Siri smarter and more helpful.
“All of this goes beyond artificial intelligence, it’s personal intelligence, and it is the next big step for Apple,” CEO Tim Cook said.
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Siri’s optional gateway to ChatGPT will be free to all iPhone users and made available on other Apple products once the option is baked into the next generation of Apple’s operating systems. ChatGPT subscribers are supposed to be able to easily sync their existing accounts when using the iPhone, and should get more advanced features than free users would.
To herald the alliance with Apple, OpenAI CEO Sam Altman sat in the front row of the packed conference, which was attended by developers from more than 60 countries.
“Together with Apple, we’re making it easier for people to benefit from what AI can offer,” Altman said in a statement.
Beyond allowing Siri to tap into ChatGPT’s storehouse of knowledge, Apple is giving its 13-year-old virtual assistant an extensive makeover designed to make it more personable and versatile, even as it currently fields about 1.5 billion queries a day.
When Apple releases free updates to the software powering the iPhone and its other products this fall, Siri will signal its presence with flashing lights along the edges of the display screen. It will be able to handle hundreds of more tasks — including chores that may require tapping into third-party devices — than it can now, based on Monday’s presentations.
Apple’s full suite of upcoming features will only work on more recent models of the iPhone, iPad and Mac because the devices require advanced processors. For instance, consumers will need last year’s iPhone 15 Pro or buy the next model coming out later this year to take full advantage of Apple’s AI package, although all the tools will work on Macs dating back to 2020 after that computer’s next operating system is installed.
The AI-packed updates coming to the next versions of Apple software are meant to enable the billions of people who use the company’s devices to get more done in less time, while also giving them access to creative tools that could liven things up. For instance, Apple will deploy AI to allow people to create emojis, dubbed “Genmojis” on the fly to fit the vibe they are trying to convey.
Apple’s goal with AI “is not to replace users, but empower them,” Craig Federighi, Apple’s senior vice president of software engineering, told reporters. Users will also have the option of going into the device settings to turn off any AI tools they don’t want.
Monday’s showcase seemed aimed at allaying concerns Apple might be losing its edge with the advent of AI, a technology expected to be as revolutionary as the 2007 introduction of the Phone. Both Google and Samsung have already released smartphone models touting AI features as their main attractions, while Apple has been stuck in an uncharacteristically extended sales slump.
AI mania is the main reason that Nvidia, the dominant maker of the chips underlying the technology, has seen its market value rocket from about $300 billion at the end of 2022 to about $3 trillion. The meteoric rise allowed Nvidia to surpass Apple as the second most valuable company in the U.S. Earlier this year, Microsoft also eclipsed the iPhone maker on the strength of its so-far successful push into AI.
Investors didn’t seem as impressed with Apple’s AI presentation as the crowd that came to the company’s Cupertino, California, headquarters to see it. Apple’s stock price dipped nearly 2% Monday.
Despite that negative reaction, Wedbush Securities analyst Dan Ives asserted in a research note that Apple is “taking the right path.” He hailed the presentation as a “historical” day for a company that already has reshaped the tech industry and society.
Besides pulling AI tricks out of its bag, Apple also used the conference to confirm that it will be rolling out a technology called Rich Communications Service, or RCS, to its iMessage app. The technology should improve the quality and security of texting between iPhones and devices powered by Android software, such as the Samsung Galaxy and Google Pixel.
The change, due out with the next version of iPhone’s operating software, won’t eliminate the blue bubbles denoting texts originating from iPhones and the green bubbles marking text sent from Android devices — a distinction that has become a source of social stigma.
In another upcoming twist to the iPhone’s messaging app, users will be able to write a text (or have an AI tool compose it) in advance and schedule a specific time to automatically send it.
Monday’s presentation marked the second straight year that Apple has created a stir at its developers conference by using it to usher in a trendy form of technology that other companies already had employed.
Last year, Apple provided an early look at its mixed-reality headset, the Vision Pro, which wasn’t released until early 2024. Nevertheless, Apple’s push into mixed reality — with a twist that it bills as “spatial computing” — has raised hopes that there will be more consumer interest in this niche technology.
Part of that optimism stems from Apple’s history of releasing technology later than others, then using sleek designs and slick marketing campaigns to overcome its tardy start.
Bringing more AI to the iPhone will likely raise privacy concerns — a topic that Apple has gone to great lengths to assure its loyal customers it can be trusted not to peer too deeply into their personal lives. Apple did talk extensively Monday about its efforts to build strong privacy protections and controls around its AI technology.
One way Apple is trying to convince consumers that the iPhone won’t be used to spy on them is harnessing its chip technology so most of its AI-powered features are handled on the device itself instead of at remote data centers, often called “the cloud.” Going down this route would also help protect Apple’s profit margins because AI processing through the cloud is far more expensive than when it is run solely on a device.
When Apple users make AI demands that requiring computing power beyond what’s available on the device, the tasks will be handled by what the company is calling a “private cloud” that is supposed to shield their personal data.
Apple’s AI “will be aware of your personal data without collecting your personal data,” Federighi said.