What observers say
“In terms of AI in software, I think people should understand that apps are going to disappear,” declared Carl Pei, co-founder of Nothing, during a thought-provoking session at the SXSW conference in Austin on March 19, 2026. His bold assertion encapsulates a significant shift in how we might interact with technology in the near future, as Pei elaborated on the evolving landscape of smartphones and artificial intelligence.
Pei’s remarks come at a time when the smartphone experience has stagnated, with the same elements dominating the market for nearly two decades. He pointed out that the current app ecosystem may not survive the transition to AI-first computing. “It’s very hard to get things done on a phone,” he lamented, highlighting the cumbersome nature of traditional app interfaces that have long dictated user interactions.
As the conversation deepened, Pei articulated his vision for a future where smartphones would no longer rely on conventional app layouts or constant user input. Instead, he foresees a world where AI systems learn to understand user intent, effectively making apps irrelevant. “I know you very well, and if I know your intention, I just do it for you,” he explained, painting a picture of a seamless, intuitive user experience.
Pei’s insights are particularly relevant given Nothing’s recent success in raising around $200 million in Series C funding, achieving a valuation of approximately $1.3 billion. This financial backing underscores the company’s commitment to innovation and its potential role in shaping the future of mobile technology. Pei’s belief that AI agents will simplify tasks on smartphones aligns with the company’s ethos of creating user-friendly devices.
However, Pei also issued a warning to startups that continue to rely on apps as their core value proposition. He cautioned that they would likely face disruption as the market evolves towards AI-driven solutions. The implications of this shift could be profound, potentially reshaping the entire tech landscape and how consumers engage with their devices.
In a world where the smartphone experience is on the verge of transformation, Pei’s vision raises critical questions about the future of mobile applications. As AI continues to advance, the traditional app model may soon become a relic of the past, replaced by intelligent systems that anticipate user needs.
As the SXSW conference unfolds, the tech community watches closely, eager to see how these predictions will materialize. With Pei at the helm of a company poised to innovate, the next steps in the evolution of smartphones promise to be as exciting as they are uncertain.
