The lawsuit is about this research paper by apple engineers where they say they used the Panda 70M training set. It is a collection of publicly sourced video content and the plaintiffs claim their content is in it.

Of course they do. Apple Intelligence.

But even more broadly you can assume Apple is working on it if:

1. It is in any way tech-related.
2. It has the possibility of marketing existing technology as "magical" and easy to use.

I looked and it's probably this which is based on OpenAI

https://en.wikipedia.org/wiki/Apple_Intelligence

Don’t know if they do LLMs but they’ve had machine learning features for years. They added the ability to extract subjects from images and turning them into stickers back in 2023.