AI devices must be close to human senses to be effective. Glasses are the most natural form factor as they capture sight, sound, and are close to the mouth for speech. This sensory proximity gives them an advantage over other wearables like earbuds or pins.

Startups are overwhelmingly focusing on rings for new AI wearables. This form factor is seen as ideal for discrete, dedicated use cases like health tracking and quick AI voice interactions, separating them from the general-purpose smartphone and suggesting a new, specialized device category is forming.

The market for AI devices will exceed the smartphone market because it encompasses not just phones but a new generation of wearables (glasses, rings, watches) that will serve as constant companions connected to AI agents.

The fear that large AI labs will dominate all software is overblown. The competitive landscape will likely mirror Google's history: winning in some verticals (Maps, Email) while losing in others (Social, Chat). Victory will be determined by superior team execution within each specific product category, not by the sheer power of the underlying foundation model.

Brand is becoming a key moat in AI infrastructure, a sector where it was previously irrelevant. In rapidly growing and confusing markets, education can't keep pace with adoption. As a result, customers default to the brands they recognize, creating powerful monopolies for early leaders. This mirrors the early internet era when Netscape dominated through brand recognition.

The sales growth of smart rings has surpassed that of smartwatches, indicating a consumer shift toward less intrusive technology. Users increasingly want the data-tracking benefits of wearables without the constant distraction of a screen on their wrist. This trend favors 'hidden tech' that integrates seamlessly and invisibly into daily life while allowing for traditional analog accessories.

Consumer innovation arrives in predictable waves after major technological shifts. The browser created Amazon and eBay; mobile created Uber and Instagram. The current AI platform shift is creating the same conditions for a new, massive wave of consumer technology companies.

To overcome massive market barriers, "Nothing" bypasses a direct feature war with tech giants. Instead, it positions its transparent-cased phones and earbuds as a rebellious fashion statement for Gen Z, even launching a streetwear line to solidify its identity as a lifestyle brand.

The true advantage for new AI-native companies lies not in simply using AI tools, but in building entirely new business models around them. This mirrors how Direct-to-Consumer brands leveraged Shopify not just to sell online, but to fundamentally change distribution, marketing, and customer relationships, thereby outmaneuvering incumbents.