Nothing Raises $200M in Series C Funding - AI Device Launch Planned

Nothing Secures $200 Million in Series C Funding

Smartphone manufacturer Nothing has announced the successful completion of its Series C funding round, raising $200 million. This investment was spearheaded by the prominent firm, Tiger Global.

As a result of this funding, the consumer electronics company now boasts a valuation of $1.3 billion.

Investor Details

The funding round saw participation from existing investors, including GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry.

Additionally, Nothing gained new strategic investment from Nikhil Kamath and Qualcomm Ventures.

This latest round brings Nothing’s total funding to exceed $450 million.

Tiger Global’s Perspective

Matt Wachter, a partner at Tiger Global, stated the firm is enthusiastic about partnering with Nothing.

He highlighted the company’s innovative approach to reimagining hardware and software, particularly with the integration of AI, to position its products for the future of personal technology.

Future Funding Plans

Nothing intends to launch another community funding round in the near future.

Previous community funding initiatives have successfully raised a total of $11.5 million for the company.

Focus on Design and Sales

The company has prioritized design as a key differentiator, a strategy that has proven beneficial to its growth.

Nothing reported surpassing $1 billion in total sales earlier this year.

An early investor expressed satisfaction with the company’s growth and its progress towards profitability.

Building Infrastructure

Nothing has dedicated resources to establishing a robust supply chain and infrastructure.

This groundwork enables the company to efficiently launch products and distribute them globally.

The recently released Phone (3), featuring the company’s signature transparent design and unique interface, represents only the second handset to receive widespread distribution in the U.S.

Market Share and Expansion

While Nothing currently holds less than 1% of the global smartphone market share, it has achieved a 2% share in India, its largest market, according to IDC.

To date, the company has shipped 5.1 million units, including over a million units in Q2 2025.

IDC notes that global expansion has been gradual, with 80% of units still being sold in Asia.

Targeting a New Generation

Carl Pei, founder of Nothing, aims to appeal to a new generation of users seeking alternatives to established brands.

He believes the company’s brand differentiation and product design are resonating with consumers interested in technology, creativity, and design.

Investor Confidence

Tony Zappalà, a partner at Highland Europe and an existing investor, affirmed that Nothing has consistently met its commitments.

He also pointed out that the company’s growing recognition within the industry provides advantages in attracting talent and forging strong supply chain relationships.

The Future of Operating Systems: Nothing's AI Vision

The company is focused on developing an operating system deeply integrated with AI and advanced personalization capabilities. This ambition extends beyond the limitations of traditional smartphone functionality.

Currently, initial implementations of AI within the operating system are limited, exemplified by features like Essential Search. This intelligent search tool streamlines information retrieval across a user’s device.

To spearhead these AI service initiatives, the startup has recruited Sélim Benayat. He brings significant experience as a former executive at Linktree and as the founder of Bento, a platform specializing in customized landing pages for social media.

Challenges in AI Integration

Zappalà highlighted that constructing an operating system centered around AI presents both experiential and trust-related hurdles.

He stated that the core difficulty in creating a successful AI-first experience isn’t solely technical. AI features must evolve to a point where users confidently accept the provided results without constant verification.

The integration of AI into operating systems has proven challenging for established companies like Apple.

For Nothing, a key consideration is achieving an optimal equilibrium between innovative features and genuine utility when implementing AI functionalities.

Smartphones as the Primary AI Platform

Pei maintains that smartphones currently represent the most effective platform for delivering AI experiences.

He anticipates that smartphones will remain “the dominant form factor” for consumer AI applications for at least the next three to five years, as discussed in a recent TechCrunch interview.

Upcoming AI-First Device and Industry Context

Alongside this funding announcement, the company revealed plans to introduce an AI-first device in the coming year.

However, the AI hardware landscape has seen limited success. The AI hardware startup Humane was acquired by HP following difficulties with its Ai Pin device.

Similarly, Rabbit, an AI assistant company, is actively refining its R1 device, having recently released a software update to address shortcomings in the initial version.