I don't think that's the case, but even if it were.
Scenario one is an advertising company that has a well publicised history of building profiles about all of it's livestock users, manipulating your images.
Scenario two is a personal computer company that has a well publicised history of making users pay for the features they need, manipulating your images.
There's plenty of actual examples of how Apple's approach to ML 'features' provides benefits to the user without being creepy. A few years ago they added keyword tagging: you search your photos for 'dog' and it shows all the pictures of your dog, somehow. Or the facial recognition system, so you can search for "Joe" and see the pictures with Joe in them.
That's all done on-device. Apple never sees that. They don't see that you have four Great Danes and thus are more likely to click on ads for 100kg bags of dog food. Even if they did that stuff in an Apple data center, their business isn't 93% funded by selling advertising spots based on a personal profile of you.
That is why ML/AI from Google are considered "creepy" by-default for a lot of people. It's also why I expect their recent "user privacy" announcement about Android, will come with some pretty hefty caveats.
Trusting Google to treat people's data as private (as in: not use it to further their own profit centres) is like trusting a goat to protect your roses against vandals.