The End of Apps: Nothing CEO Carl Pei Envisions an AI-Driven Smartphone Future
In a bold prediction that could redefine the smartphone industry, Carl Pei, CEO and co-founder of Nothing, has declared that traditional smartphone applications are on the brink of obsolescence. Speaking at the South by Southwest (SXSW) conference in Austin, Pei outlined a future where artificial intelligence (AI) agents will supplant apps, offering users a more intuitive and seamless experience.
The Decline of Apps in an AI Era
Pei’s vision challenges the current app-centric paradigm that has dominated smartphones for over two decades. He asserts that the conventional method of navigating through multiple apps to accomplish tasks is outdated and inefficient. The current way we use phones is very old-school, Pei remarked. You have lock screens, home screens, apps. You browse different apps. Each app is like a full-screen thing. There’s some kind of app store that allows you to download more apps. So it hasn’t really changed for like, 20 years.
This critique underscores a growing sentiment that the user experience has stagnated, failing to leverage the full potential of modern technology. Pei envisions a shift where AI agents, deeply integrated into the operating system, anticipate and fulfill user needs without manual intervention.
From Command Execution to Proactive Assistance
The transition to AI-driven smartphones involves several stages. Initially, AI features will execute user commands, such as booking flights or setting reminders. However, Pei considers this phase super boring and merely a stepping stone to more advanced capabilities.
The next evolution involves AI systems that understand and learn from users’ long-term intentions. For instance, if a user aims to adopt a healthier lifestyle, the AI could proactively suggest activities, monitor progress, and provide motivational nudges. I think it gets even more powerful when it starts surfacing suggestions for you; you don’t have to manually come up with an idea…when the system knows us so well, it will come up with things that we don’t even [know] we wanted, Pei explained, drawing parallels to features like ChatGPT’s memory function.
Reimagining the Smartphone Interface
Pei’s vision extends beyond functionality to the very design and interface of smartphones. He criticizes the current model, where users must navigate through multiple apps to complete simple tasks. It’s very hard to get things done on a phone, Pei said. Let’s say we want to grab coffee. That’s an intention. But to execute that intention, we have to go through so many different steps and so many different apps. It’s probably like four apps to grab coffee with somebody — some messaging app, some kind of maps, Uber, calendar.
In contrast, an AI-first smartphone would understand the user’s intention and execute the necessary actions autonomously. This approach would eliminate the need for app-based interactions, streamlining processes and enhancing user satisfaction.
Nothing’s Commitment to an AI-First Future
Nothing’s commitment to this AI-driven future is evident in its recent initiatives. In September 2025, the company secured a $200 million Series C funding round led by Tiger Global, aiming to develop an operating system with AI and personalization features. This funding round valued the company at $1.3 billion and included investments from GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry. Notably, Qualcomm Ventures also participated, signaling a strategic alignment with leading technology firms.
Pei emphasized the importance of creating an operating system that leverages AI to enhance user experience. We’re thinking about how we maneuver here, he stated, and maybe create something of our own. Some kind of operating system. This ambition reflects a desire to break free from the constraints of existing platforms and offer a more personalized and efficient user experience.
Challenges and Industry Implications
Transitioning to an AI-first smartphone ecosystem presents several challenges. Ensuring user trust is paramount, as AI systems must handle personal data responsibly and transparently. Additionally, the industry must address technical hurdles related to AI integration and the development of new hardware capable of supporting advanced AI functionalities.
Despite these challenges, Pei remains optimistic about the potential of AI to revolutionize the smartphone industry. He believes that smartphones will remain the dominant form factor for consumer AI applications for the foreseeable future. Pei believes that smartphones remain the best way to deliver AI, and they will be ‘the dominant form factor for all consumer AI applications’ for at least three to five years, he noted during a conversation with TechCrunch in July.
The Road Ahead
As Nothing continues to develop its AI-first device, the company is also exploring other avenues to enhance user experience. In September 2025, Nothing launched Playground, an AI tool that allows users to create mini-apps using simple text prompts. This initiative aims to empower users to customize their devices and create personalized experiences without the need for extensive technical knowledge.
Furthermore, Nothing’s strategic partnerships, such as the joint venture with Indian ODM Optiemus to manufacture affordable devices under the CMF brand, demonstrate a commitment to expanding its market presence and making AI-driven technology accessible to a broader audience.
Conclusion
Carl Pei’s vision of a smartphone future devoid of traditional apps represents a significant shift in the industry. By harnessing the power of AI, Nothing aims to create devices that understand and anticipate user needs, offering a more intuitive and efficient experience. While challenges remain, the company’s recent initiatives and strategic partnerships position it at the forefront of this transformative movement. As AI technology continues to evolve, the prospect of an app-less smartphone era becomes increasingly plausible, promising a future where our devices are not just tools but proactive partners in our daily lives.
