Where does iOS's on device model get its information from?

If you look at the attached screenshot, using the on device model was able to deliver a surprising amount of information about a song. Does using the on device model just mean that it is using the device rather than a cloud AI server or ChatGPT to process data it’s getting from the internet? I assume it doesn’t mean that it’s only using on-device data; just that the processing of data it gets from whatever source is happening on-device.