“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 reflects Pei’s vision for the future of smartphones, where traditional applications may not survive the transition to an AI-first computing landscape.

Pei elaborated on his perspective, noting that the current app ecosystem is at risk as AI systems evolve to better understand user intent. He emphasized, “It’s very hard to get things done on a phone,” highlighting the limitations of current smartphone interfaces that have remained largely unchanged for nearly two decades. Pei’s comments come at a time when Nothing has successfully raised around 200 million dollars in Series C funding, achieving a valuation of approximately 1.3 billion dollars.

According to Pei, the future of smartphones lies in AI agents that will simplify task completion, eliminating the need for constant user input and traditional app layouts. He envisions a scenario where smartphones operate more intuitively, responding to user needs without the intermediary of apps. This shift could revolutionize how users interact with their devices, making the experience more seamless and efficient.

Pei also warned that startups that rely heavily on apps as their core value proposition will face significant disruption in this evolving landscape. As AI technology advances, the relevance of conventional applications may diminish, leaving those companies vulnerable. He stated, “I know you very well, and if I know your intention, I just do it for you,” underscoring the potential of AI to anticipate user needs and act accordingly.

Nothing’s current operating system allows users to create their own mini apps through a process Pei describes as “vibe coding.” This innovative approach could serve as a bridge between the traditional app model and the AI-driven future he envisions, providing users with a more personalized experience while still retaining some elements of app functionality.

The smartphone experience has stagnated over the past two decades, with little innovation in how users engage with their devices. Pei’s insights at SXSW suggest a pivotal moment in technology, where the integration of AI could lead to a complete overhaul of the smartphone landscape.

As the industry watches closely, the implications of Pei’s predictions could reshape the future of mobile technology. Details remain unconfirmed regarding how quickly these changes will occur, but the conversation around AI’s role in smartphones is gaining momentum, with Pei at the forefront of this transformative dialogue.

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