What observers say
“In terms of AI in software, I think people should understand that apps are going to disappear,” stated Carl Pei, co-founder of Nothing, during a panel discussion at the SXSW conference in Austin on March 19, 2026. This bold assertion encapsulates Pei’s vision for the future of smartphones, where traditional applications may become obsolete as artificial intelligence takes center stage.
Pei’s comments come at a time when the smartphone experience has stagnated, with the same elements dominating user interactions for nearly two decades. He argues that the current app ecosystem may not survive the transition to AI-first computing, suggesting that the way people engage with their devices is on the brink of a significant transformation.
According to Pei, the future of smartphones lies in their ability to understand user intent without the need for constant input. “It’s very hard to get things done on a phone,” he remarked, highlighting the cumbersome nature of current smartphone interactions. He envisions a world where AI agents simplify tasks, making the smartphone experience more intuitive and efficient.
Pei’s perspective is underscored by Nothing’s recent success, having raised around $200 million in Series C funding, achieving a valuation of approximately $1.3 billion. This financial backing positions Nothing as a key player in the evolving tech landscape, where the integration of AI into smartphones could redefine user experiences.
Furthermore, Pei believes that as AI systems learn to understand user intent, traditional apps will gradually become irrelevant. He warned that startups relying on apps as their core value will face disruption in this new paradigm. This shift could lead to a more seamless interaction between users and their devices, where AI anticipates needs and executes tasks autonomously.
Nothing’s operating system currently allows users to vibe code their own mini apps, a feature that reflects the company’s commitment to innovation. This approach aligns with Pei’s vision of a future where smartphones no longer depend on traditional app layouts, paving the way for a more fluid and personalized user experience.
As the technology landscape continues to evolve, Pei’s insights signal a potential turning point for the smartphone industry. The implications of an AI-driven future could reshape how users interact with their devices, making the smartphone experience more aligned with individual needs and preferences.
While the details of this transformation remain unconfirmed, Pei’s vision presents a compelling narrative about the future of smartphones and the role of AI in enhancing user experiences. As the industry watches closely, the next developments in this space could redefine the very essence of mobile technology.
