Carl Pei's Nothing just closed a massive $200 million Series C round led by Tiger Global, pushing the smartphone startup's valuation to $1.3 billion. The funding comes as Nothing prepares to launch what it calls an "AI-first device" next year, betting big on AI-powered hardware when rivals like Humane and Rabbit have struggled to find their footing.
Nothing is doubling down on its bet that AI can reinvent consumer hardware. The London-based startup led by former OnePlus co-founder Carl Pei announced today it's secured $200 million in Series C funding from Tiger Global at a $1.3 billion valuation. The move positions Nothing as Europe's latest unicorn in the increasingly crowded AI hardware space.
The round attracted heavyweight backing beyond Tiger Global, with existing investors GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry participating. New strategic money came from angel investor Nikhil Kamath and Qualcomm Ventures, suggesting chip-level partnerships could be brewing. The funding brings Nothing's total raised to over $450 million since Pei launched the company in 2020.
"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," Tiger Global partner Matt Watcher told TechCrunch. The investment firm's backing signals confidence in Nothing's ability to execute where others have stumbled.
Nothing's trajectory has been impressive by startup standards. The company says it hit over $1 billion in total sales this year, driven largely by its distinctive transparent-design smartphones. The recently launched Phone (3) became only the company's second handset to receive general US distribution, expanding Nothing's footprint beyond its European stronghold. Early investors remain bullish on the growth trajectory and path to profitability, according to TechCrunch sources.
But Nothing's real ambitions extend far beyond smartphones. The company is developing what it calls an AI-first operating system with personalization features that could power multiple device categories. Current AI integration remains limited - the Phone (3) includes Essential Search, a smart search function for finding information across the device. To accelerate AI development, Nothing recently hired Sélim Benayat, former Linktree executive and Bento founder, to lead AI services.
