Nothing, the London-based startup that built its name on transparent-design smartphones, is preparing what could be its biggest strategic shift since 2020. According to an exclusive report from Smartprix backed by a trusted industry insider, the company is repositioning itself as an AI-first brand, with AI-powered wearables and audio products taking priority over phones in its near-term roadmap.
Image source: Smartprix
The move makes sense on the surface. Smartphone profit margins are shrinking, and budget gaming phones like the Realme Neo 8 still show how competitive the segment is. Hardware costs are climbing, driven partly by AI computing demands that are pushing up prices for RAM and chips across the industry. Nothing has already felt the pressure, canceling a planned CMF budget smartphone in 2025. Now the company appears to be pulling further away from the phone business rather than digging in.
Key takeaways
Nothing is reportedly repositioning as an AI-first company, prioritizing wearables and audio over smartphones.
The first product wave (Aug-Sep 2026) includes CMF Ear Clip Buds, CMF Speakers, Nothing Headphones Gen 2, and a Nothing Smartwatch.
The pivot creates tension with Nothing’s confirmed plan to double its smartphone lineup to six devices in 2027.
CEO Carl Pei has long predicted smartphone apps will disappear as AI agents take over, a vision consistent with the wearable-first strategy.
The move positions Nothing in the growing space of AI-integrated hardware, a race most major competitors are already running.
What Nothing’s AI-first phase looks like
The first wave, expected to launch between August and September 2026, includes four products according to the Smartprix report: the CMF Ear Clip Buds, CMF Speakers, Nothing Headphones (Gen 2), and a Nothing Smartwatch. Several of these represent entirely new categories for the company. The smart speaker market is already crowded with Amazon Echo and Google Nest products, and Nothing would be entering it with a transparent-design twist that matches its phone aesthetic.
Rumored product images shared by 9to5Google show the Nothing Smartwatch and audio devices carrying the brand’s signature industrial design language, with visible internal components and clean, minimal lines. The report says all products will carry an AI focus, though specific features haven’t been detailed yet.
The timing is deliberate. An August-September launch window puts Nothing ahead of Apple’s annual iPhone event, a period when consumer attention in the tech world converges on Cupertino. Starting the conversation early gives Nothing a chance to grab headlines before Apple announces its latest phones.
The tension with phone plans
Here’s where the story gets complicated. Just days after the AI pivot report broke, Android Authority reported Nothing confirmed it plans to release six smartphones in 2027, double the three it launched this year. During an interview with TimesNowNews, Nothing’s Akis Evangelidis told reporters that the company is targeting a 50 percent volume increase next year and a “wider range” of devices.
This creates an apparent contradiction. If Nothing is genuinely pivoting toward AI hardware, why expand its phone lineup so aggressively? One reading is that the company hasn’t fully committed to the pivot yet, and the smartphone expansion is a near-term revenue play while the AI lineup ramps up. Another is that Nothing sees its phones not as standalone products but as nodes in a broader AI ecosystem, the way Fitbit and Apple Watch feed into Apple’s health platform.
The tension is worth watching. Carl Pei has talked about an AI-first device for over a year, and Nothing launched an AI operating system called “Essential” in 2025 that generates custom apps for each user rather than running a traditional app shell over Android. Whether that software foundation makes the phone still essential to the strategy, or whether Nothing’s AI hardware push signals a gradual winding down of the phone business, remains unclear.
Where Carl Pei has been heading all along
Nothing’s co-founder hasn’t been quiet about his vision. At SXSW in March 2026, Pei told TechCrunch that he believes smartphone apps will eventually disappear as AI agents take over, a future that would reshape the Android app-store competition TekMag has covered. His argument is straightforward: today’s phone experience hasn’t fundamentally changed in 20 years. You unlock a screen, open apps one by one, and perform tasks that require multiple steps across different interfaces. An AI agent that knows your intentions could handle that workflow without the app-gathering ritual.
“The future is not the agent using a human interface,” Pei said. “You need to create an interface for the agent to use.”
That philosophy lines up with the wearable pivot. Earbuds and smartwatches are already attached to your body throughout the day. They’re natural places for an AI agent to live, listening and responding without requiring you to pull out a phone. Nothing’s rumored product line suggests it’s building toward exactly that kind of always-on AI companion rather than another slab of glass.
The CMF Ear Clip Buds are particularly interesting in this context. Ear clips sit outside the ear canal rather than inside it, which means they’re better suited to picking up ambient sound and voice commands than traditional in-ear buds. It’s a form factor that suggests an AI assistant role rather than a pure music-listening role.
What this means for the industry
If Nothing’s pivot holds, it reinforces a trend already visible across the industry: the race to embed AI into physical hardware rather than keeping it trapped in software. Apple is pushing Apple Intelligence deeper into iOS. Samsung is integrating AI features into its Galaxy phones and watches. Google built Gemini into Pixel devices.
Nothing’s twist is that it might get there by abandoning the phone as the center of gravity. Most competitors are bolting AI onto existing smartphones. Nothing appears to be treating the phone as optional, building instead around devices that spend more time on your body and less in your pocket.
The risk is real. Nothing’s smartphone business, while niche, gave the company brand recognition and a revenue base. Jumping too hard into wearables and audio without a solid phone foundation could leave the company exposed if the AI hardware market doesn’t move fast enough. The canceled CMF budget phone was already a warning sign that cost pressures are squeezing the company’s ability to compete in the mid-range smartphone space.
But if Nothing pulls this off, it could carve out a distinct position that bigger rivals can’t easily replicate. Apple has the ecosystem but not the design aesthetic. Samsung has the scale but not the brand narrative around transparency and minimalism. Nothing has spent five years building a design language that’s immediately recognizable, and applying it to a new category of AI hardware could give it an identity that goes beyond being “the phone company that makes cool-looking stuff.”
The August-September window will tell us whether this is a real pivot or just a press cycle. Watch for the Nothing Smartwatch and CMF Ear Clip Buds to surface first. If they arrive with meaningful AI capabilities rather than just incremental improvements, the strategy starts looking less like a rumor and more like a plan.
Conclusion
Nothing’s reported AI-first pivot marks a deliberate bet that the next wave of consumer hardware is AI-native: wearables and audio devices that act as agent interfaces, with phones gradually stepping back. The first products should land between August and September 2026, but the company’s confirmed 2027 smartphone expansion means this is an expansion into AI categories, not an exit from phones. Watch for the Nothing Smartwatch and CMF Ear Clip Buds as the first proof points of whether the pivot is real.
FAQ
Is Nothing officially confirming an AI-first pivot? No. The report comes from Smartprix citing an unnamed industry insider. Android Authority and 9to5Google both note the information is unconfirmed. Nothing has not issued an official statement.
What products are expected in Nothing’s first AI wave? CMF Ear Clip Buds, CMF Speakers, Nothing Headphones (Gen 2), and a Nothing Smartwatch, according to the Smartprix report and supporting leaks from 9to5Google.
Will Nothing stop making smartphones? Unlikely in the near term. The company confirmed it plans to release six smartphones in 2027, double this year’s count. The AI pivot appears to be about adding categories, not abandoning phones entirely.
When will these products launch? The report targets August-September 2026, though product roadmaps can shift before launch. Nothing has not set an official date.
What is Nothing’s Essential AI OS? A 2025-era operating system concept that generates custom apps for individual users rather than running a static Android skin. It was pitched as part of Nothing’s AI-first vision but hasn’t shipped publicly yet.
Sources
[1] Smartprix — Exclusive: Nothing Is Betting Its Future on AI (Jul 31, 2026)
[2] Android Authority — Nothing’s next big bet reportedly puts smartphones on the back burner (Jul 31, 2026)
[3] 9to5Google — Nothing reportedly prioritizing AI devices over smartphones (Jul 31, 2026)
[4] 9to5Google — Nothing plans to release six new smartphones in 2027 (Aug 6, 2026)
[5] TechCrunch — Nothing CEO Carl Pei says smartphone apps will disappear as AI agents take their place (Mar 18, 2026)
This article originally appeared on TekMag.
