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GIF is limited to 256 colours and unsuitable for photos. If you have a GIF you need as a compact still image, JPG is the right choice: small file, readable everywhere - ideal for attachments and websites.
The GIF is decoded locally and exported as JPG; transparent areas are filled with white. For an animated GIF only the first frame is taken, honestly. Nothing is uploaded.
This direction makes sense above all when your GIF is not a logo but a photo-like still image - a frozen film frame, say, or a screenshot with soft gradients. Such subjects suffer from the 256-colour palette and show visible steps in the transitions; as a JPG with its photo-friendly compression the result often looks smoother while staying small enough for an attachment or a web page. If, on the other hand, you care about a graphic with hard edges or about preserved transparency, converting to PNG is the more fitting choice.
An honest note: JPG compresses lossily. For a flat GIF with sharp edges - a logo, a diagram, text - PNG is the better choice, because JPG produces visible artefacts along the edges there. JPG mainly pays off here when your GIF is photo-like, because then the compression is barely noticeable and the file gets much smaller.
Limitations: Animated GIFs are converted as a still of the FIRST frame. JPG stores no transparency (transparent areas become white) and is lossy; for logos with sharp edges, GIF to PNG is better.
FAQ
Are my images uploaded?
No. The conversion runs entirely in the browser - even in airplane mode.
What happens with an animated GIF?
Only the first frame is saved as JPG. JPG cannot contain animation.