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I agree that it shouldn't do so without asking, but isn't a locally run model better in terms of privacy? So if someone wants to use Gemini, it's better to have it installed on their machine.

I'm thinking that they will send the queries and results back to the nest anyway, just using your device to offload the actual number crunching.

If stealing your data is their goal then it has nothing to do with the presence or lack of a local model, and can be done with or without an AI involved.