Nothing Raises $200M in Series C Funding, Aiming to Launch AI-First Device and Revolutionize Personal Tech

In a significant development, London-based consumer electronics startup Nothing announced it had secured $200 million in its Series C funding round. The investment was led by Tiger Global, propelling the company’s valuation to $1.3 billion.

Other investors participating in this round included existing backers such as GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry. Additionally, strategic backing came from Nikhil Kamath and Qualcomm Ventures. This funding elevates Nothing’s total investment to over $450 million.

Matt Watcher, a partner at Tiger Global, expressed excitement about the collaboration in a statement: “Nothing’s team is revolutionizing hardware and software with an AI-centric approach, setting their products apart for the future of personal technology.”

The company, helmed by Carl Pei, co-founder of OnePlus, has relied on design differentiation for success. This strategy paid off, with Nothing reporting sales exceeding $1 billion earlier in the year. Early investors praise the startup’s growth trajectory and path to profitability.

Having spent time establishing a supply chain and infrastructure, Nothing is poised to launch products globally within months. The company’s latest offering, the transparently designed Phone (3), was its second handset to receive wide distribution in the U.S.

Pei aspires to cater to a new generation of users seeking alternatives beyond established brands. He believes that Nothing’s unique branding and product design are resonating with this demographic.

Highland Europe partner Tony Zappalà, an existing investor, affirms the company has met its promises and has room for growth in the vast industry. He notes that Nothing is now recognized as a significant player, which brings advantages in terms of talent acquisition and supply chain relationships.

Nothing aims to develop an operating system with AI and personalization features extending beyond smartphones. Preliminary AI implementation can be seen in features such as Essential Search, a smart search function that facilitates device-wide information retrieval. Sélim Benayat, formerly of Linktree and Bento, leads the startup’s AI services efforts.

Zappalà acknowledges the challenge of building an effective AI-centric user experience lies in both customer experience and trust issues. He believes that for Nothing, the key will be finding a balance between innovation and usefulness while executing AI features.

Pei anticipates smartphones to remain the primary means of delivering AI, serving as “the dominant form factor for all consumer AI applications” for at least three to five years. With this recent funding announcement, Nothing plans to launch an AI-centric device in the coming year. However, the history of success in the AI hardware space remains limited, with companies like Humane being sold to HP following struggles with their AI Pin device and AI assistant company Rabbit continuing efforts to improve its R1 device.