Apple is nearing a significant agreement with OpenAI to integrate ChatGPT into the iPhone's iOS 18, enhancing its AI capabilities. This collaboration aims to utilize ChatGPT features within Apple's operating system, leveraging both Apple's in-house technology and OpenAI's advanced AI tools. The deal, still under final discussions, is part of Apple's broader strategy to advance its AI features across its devices, including a hybrid strategy where most AI features will operate on-device alongside Apple silicon-powered data centers. OpenAI's CEO, Sam Altman, has indicated that while the anticipated new search engine and GPT-5 AI model will not be unveiled, the company is preparing to announce a different project soon, described as 'magical'.