Nothing CEO Carl Pei bets on AI-native OS by 2028 to challenge iOS-Android duopoly

Nothing Phone co-founder Carl Pei

The next big disruption in smartphones could arrive by 2028, not as a new device, but as the world’s first truly AI-native operating system, and London-based Nothing believes it is uniquely positioned to ride that wave.

CEO Carl Pei told Moneycontrol that such a breakthrough could reshape the consumer tech landscape much like the shift from feature phones to smartphones, potentially challenging the long-standing dominance of iOS and Android.

“In 2028, we might see a breakthrough. It might be like a moment in time, similar to when the world went from feature phones to smartphones, when the first AI native operating system starts showing up, maybe that will shuffle the cards from the current iOS and Android duopoly that we currently see,” Pei said in an interaction.

His comments come at a time when smartphone innovation is widely seen as incremental, with hardware upgrades offering diminishing differentiation and AI features largely layered on top of existing operating systems.

Pei, who founded Nothing in October 2020 with Akis Evangelidis, argued that true disruption would require rethinking the operating system itself, not just embedding AI tools within current platforms.

At the same time, he acknowledged the constraints facing industry giants. “You got to keep pace with the consumer. You can't be 10 steps ahead of them. You gotta be like one step ahead of them,” he said.

Large ecosystems, he suggested, move slowly by necessity. “There's only us in the industry left as a startup. So, the bigger companies already have big user bases that they cannot really quickly iterate with. For instance, iOS has a billion users, and every little change will be confusing to a lot of people, so you have to change gradually. So, it's our responsibility to be more fast moving.”

While early-stage startups are experimenting with AI-first ideas, Pei argued that scale matters. Pure software firms or hardware-light ventures may innovate quickly, but delivering a mass-market product requires manufacturing depth, supply chain muscle and distribution strength.

“I think it's great that a lot of people are trying to innovate in the space, but I do think you need to be in this sweet spot of having a little bit of scale like we currently do, because then you have the resources on the engineering side, on the supply chain side, on the go to market side to actually deliver something high quality to a lot of people, but you also have the nimbleness of a smaller company in a way where the giants cannot move as quickly,” he said.

That balance, Pei believes, positions Nothing uniquely for the next wave.

“So, I think right now, the time window is perfect. AI is accelerating within the space of consumer tech, and we are one of the best positioned companies to be a part of this new wave,” he said.

If Pei’s 2028 prediction holds true, the next disruption in consumer electronics may not be about better cameras or faster chips, but about who controls the AI layer that defines how users interact with their devices.

The London-based smartphone maker is investing more into the electronics ecosystem of India, he said.

“We're definitely investing more and more into the ecosystem here. The store is like another proof point of that. But apart from the fact that the store is coming, we announced the RCB title sponsorship for the 2206 season, these are both like signals of our seriousness about the market here,” he said.

The company, which has opened its first flagship offline store in Bengaluru with plans to launch more such stores, recently formed a joint venture with contract manufacturer Optiemus Electronics. Together, they are investing over $100 million in India over the next three years, creating over 1,800 jobs.