Nothing Pivots to AI Devices as Smartwatch, Earbuds & Speakers Leak Ahead of Reported August Launch

Nothing's next big bet reportedly puts smartphones on the back burner

The report remains unconfirmed, but if accurate, it could mark Nothing's biggest strategic shift yet. Over the past several months, AI has reshaped the smartphone industry in ways most of us didn't expect. Memory prices have increased, manufacturers are paying more for powerful chips, and those costs are gradually making their way to consumers. Nothing's co-founder, Carl Pei, recently acknowledged those challenges, and we also saw Nothing cancel its highly anticipated CMF budget smartphone, a reminder that today's AI-driven hardware costs are reshaping product plans across the industry. Now, it looks like those weren't isolated decisions. An exclusive report by Smartprix claims Nothing is preparing for what could be its biggest strategic shift since the company launched. Citing a trusted industry source with a solid track record, the report says Nothing is repositioning itself as an AI-first company, with its next wave of products focused on AI-powered accessories and wearables. The transition reportedly won't happen all at once, though. Instead, it's expected to roll out in phases, with the first products potentially arriving around August or September. If the report is accurate, this marks a pretty significant change in direction. Nothing built its reputation by making smartphones feel interesting again, with its transparent design and Glyph interface helping it stand out in a sea of lookalike devices. But instead of doubling down on phones, the company is reportedly betting that AI-powered devices will be its next big growth opportunity. The first phase could include products like the CMF Ear Clip Buds, CMF speakers, Nothing Headphones (Gen 2), and even a Nothing smartwatch. As you'd expect, the company's signature transparent aesthetic is also said to carry over to these new products. For consumers, this is where things start getting interesting. AI arguably makes more sense on devices you wear every day. After all, your earbuds, headphones, or smartwatch are already with you through your commute, workouts, meetings, and phone calls, making them a much more natural place for intelligent features to help throughout the day. That said, nothing is official just yet. This information comes from unnamed industry sources, and plans can always change before launch. We've also reached out to Nothing for comment and will update this story if we hear back. Until then, it's worth taking this report with a healthy dose of skepticism. Still, if it turns out to be accurate, the next chapter for Nothing may be about building an AI ecosystem rather than simply releasing another smartphone.

Nothing reportedly prioritizing AI devices like its leaked smartwatch over smartphones

For a company that built its foundation on smartphones that promised to go against the grain, Nothing is reportedly putting heavy emphasis on AI, as sources leak upcoming devices and suggest the company wants to allocate fewer resources to Android phones. Smartprix reports that Nothing wants to devote more effort to developing AI-centered products rather than smartphones, which is where the company began for Carl Pei. The report mentions that the aforementioned CEO supports the idea, believing that the shift will enable brand growth. This comes as Nothing recently announced the closure of several dedicated hubs in favor of regional operations. Scaling back also came with layoffs or "reorganizations" within the company, confirming earlier reports. While the original story suggested Nothing was shutting down its global operations as a whole, the reality lines up with the recent claims that the company wants to pull away from smartphones. That doesn't mean Nothing will stop making products in favor of AI models. It has several devices in the pipeline, according to the leak. For one, Nothing plans to release the Nothing Smartwatch alongside the CMF Ear Clip Buds, Nothing Headphones (Gen 2), and the CMF Speakers. The Nothing Smartwatch had leaked previously, but pictures weren't included. New images include all four products. They take on the same design language as Nothing's Phone series and audio products, so there's no surprise there. Another product is visible in the last image, though. It looks like what could be another tracker or maybe a wearable. With Nothing's new direction, we can assume all of these products will bring a bigger focus on AI than the initial versions did. We can't say the writing wasn't on the wall. The company ended 2025 by launching an AI OS called "Essential." The software, rather than running as a skin over Android like Nothing OS, would build custom apps for each user. It's slated for release in 2027, though it's unclear whether the recent sentiment from sources close to Nothing makes Essential obsolete, or if Nothing simply plans to reduce its smartphone offerings to one or two devices. The new audio products and Nothing Smartwatch are rumored to launch sometime within the next couple of months.