Google introduced the Tensor series of chips with the Pixel 6 series in 2021. It was meant to usher in a range of chips specially tailored by Google to keep up with its class-leading AI-based software features. Just three Tensor chips in, and many of Google’s new AI features need to be off-loaded to the cloud for processing.
Google makes money from ads that they’re going to serve you no matter where they process your data.
Google is going to pull all that metadata from your device regardless of where it was processed.
Servers cost Google money to run. It costs them nothing to run something on your device. They clearly have a vested interest in running it on your device if they can.