Carl Pei, the founder and CEO of Nothing, has stated that the company is considering the development of its own operating system

Currently, the global smartphone market is dominated by just two mobile operating systems, making it challenging for manufacturers to venture into building their own. Most companies choose to stick with Android, customizing it with various skins and features.

While Huawei has attempted to break this trend with its Harmony OS, the effort stemmed from restrictions on American technology, and even the well-resourced giant faced significant hurdles in creating a viable alternative to Android.

At TechCrunch Disrupt 2024, Pei discussed Nothing’s ambitions to potentially create a mobile OS from scratch, emphasizing the need for innovation in a market heavily influenced by Google’s and Apple’s dominance. He expressed that smartphones are essential for connecting with people and accessing information, and he envisions a unique operating system that could challenge this duopoly.

Pei noted that developing a mobile OS could enable Nothing to have a greater impact on the industry and establish a new revenue stream. He pointed out the advantages of software development over hardware, citing issues like supply chain complexities, capital expenditure, low margins, and the inherent risks of hardware market fit. In contrast, software can provide higher profit margins, allowing for a more sustainable business model while still focusing on consumer satisfaction.

He believes advancements in AI technology have simplified the process of creating an operating system and could enhance customization options that current platforms lack. Pei stated, “We don’t need to focus on the foundational elements like drivers and kernels; instead, we should innovate user experience.” He criticized the stagnation of operating systems over the past four decades, arguing that devices should better utilize the wealth of information they hold to improve user experiences.

When asked if the company plans to seek funding for this project, Pei refrained from commenting. He emphasized that the development would leverage applied AI rather than foundational AI work, which is already highly competitive. “We’re not building foundational models or text-to-speech capabilities; that ship has sailed,” he said, suggesting that only a few players would succeed in that arena.

Regardless of funding, Pei is confident that the project can progress. He clarified that while AI would play a role in the new OS, it wouldn’t define it. “AI is just a tool,” he stated, asserting that the key to success lies in creating a product that meets market needs and ensures high user satisfaction. Without that, he believes the project won’t thrive.