Entering the era of ‘thought companions’, not smartphones

Staff Report: PNN

Over the next five to ten years, the way people use smartphones will change radically—smartphones may not even exist in their current form. This view was expressed by John Callahan, co-founder of U.S.-based venture capital firm True Ventures.

Having invested in successful companies like Fitbit, Ring, Peloton, HashiCorp, and Duo Security for over two decades, Callahan believes that the way humans interact with technology is about to undergo a major transformation.

Callahan said, “The way we currently take out phones to send messages or write emails is extremely inefficient. It constantly interrupts our daily lives and is prone to errors.” According to him, smartphones are not the ideal interface between human intelligence and artificial intelligence.

Based on this belief, True Ventures has been working for several years on alternative interfaces, where software and hardware together create new experiences. A recent example is a new hardware device called ‘Sandbar’—a voice-activated ring worn on the finger. Callahan describes it as a “thought companion,” capable of instantly capturing and organizing ideas or information in the mind via voice notes.

He clarified that this is not a health tracking device nor intended to compete with existing AI gadgets. It addresses a fundamental human behavioral need—capturing sudden thoughts immediately.

Sandbar’s founders, Mina Fahmy and Kirak Hong, previously worked together at CTRL-Labs, a neural interface startup acquired by Meta. Callahan emphasized that their perspective was unique: “It’s not just a device; it creates a habit that people won’t be able to function without in the future.”

True Ventures’ investment strategy is also distinctive. While many AI startups raise hundreds of millions at the start, True typically invests $300,000–$600,000 initially and acquires 15–20% equity. Callahan believes that it is still possible to create value without raising billions.

Although optimistic about AI, he is cautious. Large capital investments in data centers and chips signal risk. However, real value will emerge at the application level, where new interfaces change human behavior.

In conclusion, Callahan believes that major technological shifts occur when new behavioral habits emerge. With the smartphone market nearly stagnant, wearable and voice-based devices are rapidly growing, indicating that people are seeking new ways to interact with technology, and True Ventures is betting on this shift.