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2 points

which implies using an external API to do that translation

It doesn’t. You can have local models.

Storing cloud backups requires a server and storage, etc.

Yes, it doesn’t have to be the author’s storage. Many, many apps implement it as adding the data to your Google Drive / Dropbox / whatever.

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1 point

You can have local models, but the vast majority of people are going to farm that out to a 3rd party provider via API calls because it’s the easiest thing to do.

Remember I said “It all depends on how you implement it”.

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