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 soon 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 the landscape for nearly two decades. He argues 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 remarked, highlighting the cumbersome nature of existing mobile interfaces.
As AI systems become more adept at understanding user intent, Pei believes that the reliance on apps will diminish. He envisions a future where smartphones operate without the need for traditional app layouts or constant user input. “I know you very well, and if I know your intention, I just do it for you,” he explained, suggesting that AI agents will streamline task completion on smartphones.
Nothing, the company co-founded by Pei, has recently raised around $200 million in Series C funding, achieving a valuation of approximately $1.3 billion. This financial backing underscores the confidence investors have in Pei’s vision for the future of mobile technology. The company’s operating system currently allows users to vibe code their own mini apps, a step towards integrating AI more deeply into the smartphone experience.
However, Pei also issued a warning to startups that rely heavily on apps as their core value proposition. He cautioned that these businesses could face significant disruption as the market shifts towards AI-driven solutions. The implications of such a transition could be profound, reshaping the competitive landscape of the tech industry.
Pei’s insights reflect a broader trend in technology, where the integration of AI is poised to redefine user interactions with devices. As smartphones evolve, the way we engage with technology is likely to change dramatically, moving away from the app-centric model that has dominated for years.
Looking ahead, the industry is keenly observing how these developments will unfold. With Pei at the forefront of this transformation, the future of smartphones may very well hinge on the successful integration of AI, potentially rendering traditional apps a relic of the past.
