No, I mean the cloud handles CPU related tasks. I can imagine the reason why there is so much latency in regular streaming is because of the graphics.
Rather that's the bandwidth issue which is why streaming games will end up costing more data than streaming netflix at the same resolution. Which can also be mitigated in that video and audio streams can be buffered while gaming streams really cannot. The latency is caused by the controller input having to travel from controller to receiver to internet to server, computed, video traveling from server to internet to screen. Whereas in traditional gaming controller to console, computed, to screen. The internet is the bottleneck, twice.