Apple (NASDAQ:) was reported to be nearing an agreement with OpenAI to integrate the startup's AI technology into the iPhone, Bloomberg News reported.

This move is part of Apple's broader initiative to enhance its devices with artificial intelligence capabilities.

The technology from OpenAI, including features of the ChatGPT chatbot, is expected to be incorporated into iOS 18, the forthcoming iPhone operating system.

While the terms of the partnership are being finalized, there is anticipation that Apple will unveil a range of new AI features at its much-anticipated annual Worldwide Developers Conference (WDC) in June.

The tech behemoth aims to make a significant impact in the AI sector, with plans to operate some of its new AI functionalities through data centers powered by Apple's custom processors.

This development follows a statement last year by Apple CEO Tim Cook, who acknowledged using OpenAI's ChatGPT and promised the introduction of new AI features on a "very thoughtful basis."

In addition to OpenAI, Apple has engaged in discussions with Google (NASDAQ:) regarding the potential use of Google's Gemini chatbot. Although these talks have not yet resulted in a formal agreement, they are ongoing, the report added.