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 thought-provoking session at the SXSW conference in Austin on March 19, 2026. This bold assertion encapsulates Pei’s vision for the future of smartphones, where traditional app ecosystems may not survive the transition to AI-first computing.
Pei’s remarks come at a time when the smartphone experience has stagnated, relying on the same elements for nearly two decades. He believes that as AI systems evolve to better understand user intent, the reliance on apps will diminish. “It’s very hard to get things done on a phone,” Pei lamented, highlighting the cumbersome nature of current smartphone interactions.
With Nothing’s recent success in raising around $200 million in Series C funding, achieving a valuation of $1.3 billion, Pei is poised to lead a shift in how we interact with our devices. He envisions a future where smartphones no longer depend on traditional app layouts or constant user input. Instead, AI agents will streamline tasks, making the user experience significantly more intuitive.
Pei’s perspective is not just theoretical; he warns that startups relying on apps as their core value will face disruption in this rapidly evolving landscape. As AI technology advances, the current way people use phones will inevitably change, and those who cling to outdated models may find themselves left behind.
Nothing’s operating system is already paving the way for this transformation, allowing users to vibe code their own mini apps today. This innovative approach aligns with Pei’s vision of a more fluid and adaptive smartphone experience, where the device anticipates user needs rather than waiting for input.
As the conversation around AI in smartphones continues to evolve, Pei’s insights serve as a crucial reminder of the potential for innovation in an industry that has seen little change in recent years. The implications of his statements could reshape the future of mobile technology, challenging developers and consumers alike to rethink their relationship with smartphones.
Looking ahead, the question remains: how quickly will this shift occur, and what will it mean for the millions of users accustomed to the app-centric model? As Pei’s vision unfolds, the tech community watches closely, eager to see how AI will redefine the smartphone experience.
