Nothing, the innovative smartphone startup founded by former OnePlus co-founder Carl Pei, has successfully closed a $200 million Series C funding round led by Tiger Global. This investment values the company at $1.3 billion, marking a significant milestone in its journey to disrupt the consumer electronics market. The round also attracted participation from existing investors including GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry, alongside new strategic backers such as Nikhil Kamath and Qualcomm Ventures. With this infusion, Nothing’s total funding now exceeds $450 million, providing substantial resources to fuel its ambitious expansion plans.
Matt Watcher, a partner at Tiger Global, highlighted the company’s forward-thinking approach in a statement, saying, “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. We’re excited to partner with this exceptional team as they pioneer AI-native experiences.” This endorsement underscores Nothing’s potential to blend cutting-edge design with artificial intelligence, setting it apart in a competitive landscape dominated by established giants.
Building on its community-driven ethos, Nothing announced plans to launch another community funding round in the near future. Previous such rounds have collectively raised $11.5 million, demonstrating strong grassroots support for the brand. Financially, the company reported surpassing $1 billion in total sales earlier this year, a testament to its rapid growth and market traction. An early investor expressed satisfaction with Nothing’s trajectory toward profitability, noting the company’s disciplined approach to scaling operations.
Nothing’s success story is rooted in its emphasis on design differentiation and efficient supply chain management. The startup has invested heavily in building infrastructure that enables it to conceptualize, launch, and globally distribute products within months. A prime example is the recently unveiled Phone (3), which features the company’s iconic transparent design and a distinctive user interface. This device marks Nothing’s second handset to achieve general distribution in the U.S., expanding its footprint beyond core markets.
Despite these achievements, Nothing remains a nimble player in the global smartphone arena. According to data from analytics firm IDC, the company holds less than 1% of the worldwide market share. However, it has carved out a more substantial 2% presence in India, its largest market. To date, Nothing has shipped 5.1 million units, with over 1 million units dispatched in the second quarter of 2025 alone. IDC also pointed out that 80% of these units are still sold in Asia, indicating room for accelerated global expansion.
Carl Pei has positioned Nothing to appeal to a younger demographic seeking fresh alternatives to traditional smartphone brands. During the Phone (3) launch in July, Pei told TechCrunch, “The way we’ve differentiated our brand and differentiated our products is really resonating with our group of consumers. We’re targeting the next generation. They’re interested in tech. They’re interested in creativity and design, and we really found resonance among that consumer group.” This focus on tech-savvy, design-oriented users has helped Nothing build a loyal following.
Tony Zappalà, a partner at Highland Europe and an existing investor, praised Nothing’s execution. He noted that the company has consistently delivered on its promises and is well-positioned for growth in the vast consumer electronics industry. Zappalà emphasized Nothing’s rising recognition, which facilitates talent acquisition and stronger supply chain partnerships. “The company has delivered on its promises and has room to grow in this huge industry,” he said, adding that Nothing is now a “recognized name in the industry.”
Looking ahead, Nothing is pivoting toward AI integration as a core pillar of its strategy. The company is developing an advanced operating system infused with AI and personalization capabilities, potentially extending beyond smartphones. Early implementations include features like Essential Search, an intelligent tool that scans devices to retrieve information efficiently. To spearhead these efforts, Nothing has recruited Sélim Benayat, formerly an executive at Linktree and founder of Bento—a platform for creating personalized social media landing pages—as the lead for its AI services.
Building trustworthy AI experiences presents significant challenges, as Zappalà observed. “I think the challenge of building an effective AI-first experience is not unique to Nothing. This is more than a technical challenge; AI features need to reach a stage where users are not double-checking the output,” he explained. This sentiment echoes broader industry struggles, with even tech behemoths like Apple facing hurdles in seamlessly incorporating AI into their ecosystems. For Nothing, the key lies in striking a balance between innovation and reliability to ensure user adoption.
Pei remains bullish on smartphones as the primary vehicle for consumer AI. In a July conversation with TechCrunch, he asserted that smartphones will be “the dominant form factor for all consumer AI applications” for at least three to five years. This conviction aligns with Nothing’s roadmap, which includes launching an AI-first device next year, leveraging the fresh capital to accelerate development.
The AI hardware sector, however, is fraught with pitfalls, as evidenced by recent developments among peers. AI startup Humane, after facing challenges with its AI Pin wearable, was acquired by HP. Similarly, Rabbit has been iterating on its R1 AI assistant device, recently issuing a software update to address initial shortcomings. These cases highlight the risks and complexities involved, yet Nothing’s blend of proven hardware expertise and AI ambition positions it uniquely to navigate this evolving space.
As Nothing scales with its $1.3 billion valuation, the company is poised to challenge incumbents by prioritizing user-centric design, rapid innovation, and AI-driven personalization. With strong investor backing and a clear vision, Nothing could redefine personal technology for the next generation of consumers.
