Nothing Secures $200 Million Series C Funding Led by Tiger Global, Plans for AI-Driven Innovations
Nothing, a burgeoning smartphone startup, has successfully closed a $200 million Series C funding round, led by Tiger Global, elevating its valuation to $1.3 billion. With ambitious plans to launch AI-first devices, the company aims to reshape the landscape of personal technology.
TL;DR
Smartphone start up Nothing has raised $200M in Series C funding led by Tiger Global, pushing its valuation to $1.3B and total funding above $450M. The company plans to launch an AI-first device in 2026, building on its vision of blending hardware, software, and AI. Despite a modest global share (<1%), Nothing has grown rapidly in India (2% market share) and shipped 5.1M units to date, with over 1M in Q2 2025 alone. Founder Carl Pei aims to attract younger, design-conscious consumers while expanding into AI-driven operating systems and personalized features.
Smartphone start up Nothing has made headlines with its recent announcement of closing a significant funding round. The company successfully raised $200 million in its Series C financing, led by the renowned investment firm Tiger Global. This substantial investment has propelled Nothing's valuation to a remarkable $1.3 billion, marking a significant milestone in the company's journey.
The Series C round attracted a diverse group of investors, including existing backers such as GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry. Additionally, the company welcomed new strategic investments from notable figures like Nikhil Kamath and Qualcomm Ventures. With this latest injection of funds, Nothing's total funding has now surpassed $450 million.
According to Matt Watcher, a partner at Tiger Global, Nothing's focus on integrating AI into its hardware and software is a game-changer. “Carl and the team at Nothing are reimagining hardware and software with an AI overlay to position their products for the next era of personal technology,” Watcher stated in a press release. This forward-thinking vision aligns with the ongoing evolution of personal technology.
In addition to institutional investments, Nothing has announced plans to open another community funding round soon. In previous community initiatives, the start up successfully raised a total of $11.5 million, allowing enthusiasts and supporters to participate in its growth.
Nothing has carved a niche for itself in the highly competitive consumer electronics market by prioritizing design differentiation. The company recently reported achieving over $1 billion in total sales, underscoring its successful market strategy. An early investor expressed satisfaction with Nothing's growth trajectory and its potential path to profitability.
Despite holding less than 1% market share globally, Nothing has made notable strides in India, its largest market, where it commands a 2% share, as reported by analytics firm IDC. Since its inception, the company has shipped approximately 5.1 million units, with over a million units shipped in just the second quarter of 2025. However, its global expansion has been gradual, with around 80% of its sales still concentrated in Asia.
Founder Carl Pei has expressed a desire to appeal to the next generation of tech-savvy consumers who seek alternatives to established brands. During the launch of Phone (3) in July, Pei emphasized, “The way we’ve differentiated our brand and products resonates with our target consumers, who are interested in technology, creativity, and design.”
Nothing's future endeavours include the ambitious goal of developing an operating system with robust AI and personalization features that may extend beyond smartphones. Currently, the company has introduced some AI functionalities, such as Essential Search, which enhances user experience by simplifying information retrieval across devices.
To spearhead its AI initiatives, Nothing has appointed Sélim Benayat, a former executive from Linktree and founder of Bento, a platform designed for personalized social media landing pages. Tony Zappalà, a partner at Highland Europe, noted that the challenge of building an effective AI-first experience extends beyond technical hurdles. He remarked, “AI features need to evolve to a level where users trust the output without double-checking.”
Historically, even giants like Apple have faced difficulties in integrating AI features seamlessly into their operating systems. For Nothing, the focus will be on striking a balance between innovative features and user-friendly design.
Pei believes that smartphones will continue to be the most effective medium for delivering AI solutions. He stated, “Smartphones will remain the dominant form factor for all consumer AI applications for at least the next three to five years.” This insight reflects the ongoing reliance on mobile technology in the evolving landscape of AI.
With the recent funding announcement, Nothing has disclosed its intention to launch an AI-first device in the upcoming year. However, the AI hardware sector has seen its share of challenges, with companies like Humane and Rabbit struggling to deliver successful products. Humane's AI Pin device was sold to HP after facing difficulties, while Rabbit has been working on improving its R1 device following underwhelming initial feedback.
As Nothing continues to innovate and expand its presence in the smartphone market, the company is poised to play a significant role in shaping the future of personal technology. With a focus on AI-driven solutions and a commitment to design differentiation, Nothing aims to resonate with the next generation of consumers who are eager for fresh alternatives in a crowded marketplace.
