Technology company Nothing, in a video collaboration with YouTuber MrWhoseTheBoss, outlined the development process and estimated $40.47 million cost for building a custom smartphone operating system using the Android Open Source Project.

The total estimated cost was presented as part of a project to create a custom OS for the YouTuber, Arun Maini. This figure is notably higher than the approximately $26 million estimated to produce the hardware for a flagship phone, a comparison drawn from the duo’s earlier “Dream Phone” project. By building its platform on the Android Open Source Project (AOSP), Nothing avoids the significantly higher investment required to start from zero. This approach saves development time and money while ensuring full access to Google’s established application ecosystem.

The development process is broken down into a multi-stage timeline. It begins with a two-month planning phase where senior teams establish requirements, budgets, and design goals. This initial stage involves mapping out details from core system layouts to minor visual elements like glowing notifications. This is followed by a six-month platform development period, which entails forking AOSP’s source code and constructing a customized baseline OS. A subsequent six-month phase is then dedicated to testing, quality, and compliance, utilizing automated checks and internal user trials to ensure system security and operational reliability.

The final stages of the project focus on device integration and public release. A three-month hardware implementation period sees engineers installing and fine-tuning the software for specific device models, ensuring compatibility with all physical components. The process concludes with the deployment and launch phase, which includes adding final polish, integrating pre-installed applications, and preparing an essential day-one update for the official rollout to users.

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The budget is heavily weighted toward personnel and infrastructure. Engineering and design teams alone account for over $34 million of the total cost. Additional expenses, amounting to several hundred thousand dollars, cover necessary resources such as cloud GPUs for intensive processing, user testing sessions to gather feedback, specialized R&D tooling, software licenses, and physical testing equipment. The financial plan also incorporates a 15% contingency fund to cover unforeseen expenses, which brings the total project estimate to the $40.47 million figure.

The video distinguished the scope of a full operating system from that of a simple custom launcher. A launcher exclusively alters the user interface, affecting visual components such as application icons, home screen widgets, and general layouts. An OS, by contrast, modifies the underlying system framework. This core framework governs how the device’s hardware components—including its memory, sensors, and connectivity modules—operate in unison to manage overall system performance. This technical distinction explains Nothing’s decision to develop a full-fledged operating system.

To provide scale for the undertaking, the video referenced the creation of a completely new OS from scratch, using Huawei’s HarmonyOS as an example. Such a project, starting without the AOSP foundation, could take four years or more to complete, according to the video’s analysis. The associated cost would also multiply several times over the budget detailed by Nothing. The breakdown indicated that while hardware often receives more public attention, software development can constitute the dominant portion of a technology project’s budget.

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