Nothing Raises $200M from Tiger Global for AI Device Launch
▼ Summary
– Nothing raised $200 million in a Series C round led by Tiger Global, valuing the company at $1.3 billion and bringing total funding to over $450 million.
– The company, founded by former OnePlus co-founder Carl Pei, has achieved over $1 billion in total sales and shipped 5.1 million units to date.
– Nothing focuses on design differentiation and targets the next generation of tech-savvy consumers, with its largest market being India where it holds a 2% share.
– The startup plans to develop an AI-first operating system and device, hiring Sélim Benayat to lead AI services and aiming to launch an AI-native product next year.
– Despite challenges in AI hardware integration and global expansion, investors express confidence in Nothing’s growth trajectory and market positioning.
The smartphone startup Nothing has successfully secured $200 million in a Series C funding round, a significant investment led by Tiger Global that values the company at $1.3 billion. This latest injection of capital brings Nothing’s total funding to more than $450 million, signaling strong investor confidence in its vision for the future of personal technology.
Existing supporters including GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry participated in the round, alongside new strategic investors Nikhil Kamath and Qualcomm Ventures. Founded by Carl Pei, who previously co-created OnePlus, Nothing has built a reputation for blending distinctive design with competitive performance.
Matt Watcher, a partner at Tiger Global, emphasized the company’s forward-looking approach, stating that Nothing is “reimagining hardware and software with an AI overlay to position their products for the next era of personal technology.” The firm expressed enthusiasm about partnering with Nothing as it pioneers what it describes as AI-native experiences.
Nothing also plans to open another community funding round in the near future. Previous rounds of this kind have collectively raised $11.5 million from enthusiastic supporters.
Design innovation has been central to Nothing’s strategy, a focus that appears to be paying off. The company recently surpassed $1 billion in total sales, and early investors have voiced satisfaction with its growth and path toward profitability. To date, Nothing has shipped 5.1 million devices, with over one million units delivered in the second quarter of 2025 alone.
While the brand holds less than 1% of the global smartphone market, it has captured 2% in India, its largest market. According to IDC, 80% of its sales still come from Asia, indicating that international expansion remains a work in progress.
The recently released Phone (3), which features Nothing’s signature transparent design and custom interface, is only its second handset to receive widespread distribution in the United States. Pei has stated that the company aims to attract a new generation of users who value creativity, design, and technological innovation.
Tony Zappalà, a partner at Highland Europe and existing investor, noted that Nothing has delivered on its promises and still has considerable room to grow within the massive smartphone industry. He highlighted that being a recognized name offers advantages in talent acquisition and supply chain development.
Looking ahead, Nothing is setting its sights on artificial intelligence. The company intends to develop an operating system enriched with AI and personalization capabilities, potentially extending beyond smartphones. Currently, its OS includes features like Essential Search, which helps users locate information across their device.
To lead its AI initiatives, Nothing has brought on Sélim Benayat, formerly of Linktree and founder of Bento. Zappalà pointed out that creating an effective AI-integrated system involves not only technical hurdles but also building user trust. He remarked that the goal is for AI features to reach a point where people no longer feel the need to verify their output.
Pei remains convinced that smartphones are the ideal platform for AI, predicting they will serve as the primary vehicle for consumer AI applications for at least the next three to five years.
With this new funding, Nothing has announced plans to launch an AI-first device in the coming year. This move places it in a challenging market segment where other companies, such as Humane and Rabbit, have faced difficulties with their own AI hardware offerings.
(Source: TechCrunch)