Paying 6.5 billion for a one year old startup is ridiculous. Open AI is buying Jonny Ive’s name and Apple reputation. Now Ives team of obsessive compulsives must design AI wearables and devices. AI devices the size of an iPhone I suppose.
What AI there is in iPhone 16, mostly involves working with/ outsourcing to AI data centers in the so called cloud.
If you're willing to have your wearable or phone connect to the cloud, we have that now. That's not "local" hardware, it just a terminal to cloud services. The more interesting challenge is to get that processing capability on the device, without a cloud connection required.
Hardware technology is at least 15 years away from a handheld or wearable device that has actual (as opposed to "claimed") on-device AI capability.
There will be a lot of marginal claims in the meantime, but the processing power required for AI is not arbitrarily shrinkable, and it needs power. There has to be some new technological advance in processing hardware before small (wearable/mobile) AI becomes possible.