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 keynote address at the SXSW conference in Austin on March 19, 2026. This bold assertion reflects Pei’s vision for the future of smartphones, where traditional app ecosystems may not survive the transition to AI-first computing.
Pei elaborated on his perspective, noting that the smartphone experience has stagnated with the same elements for almost two decades. He believes that as AI systems evolve, they will learn to understand user intent, rendering apps increasingly irrelevant. “It’s very hard to get things done on a phone,” Pei remarked, highlighting the inefficiencies of current smartphone usage.
Nothing, the company Pei co-founded, has recently raised around 200 million dollars in Series C funding, achieving a reported valuation of 1.3 billion dollars. This financial backing underscores the confidence investors have in Pei’s vision for the future of mobile technology. He envisions smartphones that no longer depend on traditional app layouts or constant user input, suggesting a paradigm shift in how users interact with their devices.
Pei’s insights indicate a significant disruption on the horizon for startups that rely on apps as their core value. He warned that these companies may struggle to adapt in an environment where AI agents simplify task completion on smartphones. “I know you very well, and if I know your intention, I just do it for you,” he explained, emphasizing the potential for AI to streamline user experiences.
Nothing’s operating system currently allows users to vibe code their own mini apps, showcasing an innovative approach to software development. This feature aligns with Pei’s vision of a future where user interaction is intuitive and seamless, moving away from the cumbersome app-based model.
As the landscape of mobile technology continues to evolve, Pei’s predictions about the decline of traditional apps raise critical questions about the future of the smartphone industry. The implications of an AI-first approach could redefine how consumers engage with their devices, potentially leading to a more efficient and personalized experience.
With the rapid advancements in AI and the growing interest in its applications, the next few years will be crucial in determining the trajectory of smartphones and their reliance on apps. Observers will be keen to see how Pei’s vision materializes and whether the industry can adapt to these transformative changes.
