Nothing proves it’s better than something as it raises $200M to build AI-native OS for smartphones

Nothing has secured $200 million in funding at a $1.3 billion valuation to develop its own AI-native operating system that will initially launch on smartphones, audio products, and smartwatches. CEO Carl Pei envisions a radically personalized OS where AI agents handle tasks proactively, with the company’s first AI-native devices launching as early as 2026.

What you should know: Nothing’s new OS will fundamentally reimagine how people interact with devices through hyper-personalization and AI automation.

• The operating system will be “significantly different” from current platforms, designed to know users deeply and adapt interfaces based on context and needs.
• AI agents will execute tasks on behalf of users once they confirm intent, handling non-essential activities so people can focus on what matters most to them.
• The company plans to create “a billion different operating systems” rendered for a billion different people, moving away from today’s one-size-fits-all approach.

The rollout strategy: Nothing will start with existing device categories before expanding to emerging technologies.

• Initial deployment will focus on smartphones, audio products, and smartwatches—devices people already use daily.
• Future expansion will include smart glasses, humanoid robots, electric vehicles, and other emerging form factors.
• The company continues using Android in the interim, with an Android 16 update announcement coming soon.

What they’re saying: Pei outlined his vision for AI-native devices that respond to user needs in real-time.

• “A new class of AI-native devices will emerge. Products that are available to the user at the moment of need, paired with intelligence that turns understanding into action,” he explained.
• “This is a very exciting time, imagining devices that capture context across modalities and generate interfaces on demand, shaped by what the user is trying to accomplish.”

The bigger picture: Nothing sees smartphones as just the starting point for a broader ecosystem transformation.

• While smartphones remain “the only device shipping at billion-unit scale each year,” Pei predicts “we’ll all be carrying an additional device that will be just as important” soon.
• The company has been “hard at work imagining what this future could look like” and expects to launch its first AI-native devices next year.

Why this matters: Nothing’s ambitious OS project represents a significant bet on AI fundamentally changing how people interact with technology, potentially challenging established players like Google and Apple in the mobile operating system space.