Nothing, the London-based consumer technology startup founded by Carl Pei, has secured $200 million in a Series C funding round at a $1.3 billion valuation, as it prepares to pivot from being the first new independent smartphone brand in over a decade towards building an AI-native platform.
The raise, led by Tiger Global with support from existing investors including GV, Highland Europe, EQT, Latitude, I2BF and Tapestry, alongside new strategic backers Qualcomm Ventures and Indian investor Nikhil Kamath, brings Nothing’s total funding to $63 million.
The company, which surpassed $1 billion in cumulative sales earlier this year, says the fresh capital will be used to accelerate its innovation roadmap, scale global distribution and bring its first AI-native devices to market in 2026.
Pei, (pictured) who co-founded smartphone disruptor OnePlus before launching Nothing in 2020, said the Series C round marks the start of “chapter two” for the company.
“For AI to reach its full potential, consumer hardware must reinvent itself alongside it,” he said. “We see a future where operating systems are hyper-personalised to each user, where interfaces adapt to our context, and where devices act as agents on our behalf. This is the opportunity Nothing is uniquely positioned to capture.”
The company has shipped millions of devices in just four years, including its Phone (2), Ear (stick) and Ear (2) products. It has built a global supply chain and design team capable of launching new hardware at speed and scale, with Pei arguing that its ability to own “the last mile of distribution” gives it an advantage over incumbent tech giants in building the next wave of AI-driven consumer devices.
Nothing says its vision is to create an operating system that learns deeply about its users and adapts to them individually. Unlike today’s one-size-fits-all systems, Pei describes a future where “a billion different operating systems will be rendered for a billion different people.”
While smartphones will remain central, the company sees AI extending across multiple form factors — from wearables and smartwatches to smart glasses, humanoid robots and eventually even electric vehicles.
In the near term, Pei predicts a new category of AI-native devices will emerge alongside smartphones. “Soon, we’ll all be carrying an additional device that will be just as important,” he said, suggesting that products capable of capturing richer user context will make AI assistants far more useful in daily life.
Nothing confirmed it will also launch a new Community round to give its 120,000-strong supporter base another opportunity to invest. Previous rounds were heavily oversubscribed, with retail investors buying into the company’s growth story alongside institutions.
The company’s Series C comes against a backdrop of mounting pressure on global consumer tech. Hardware margins have been squeezed by tariffs, inflation and a post-Covid spending slowdown, but investors are betting that AI integration can drive a new growth cycle.
Jose Gaytan de Ayala, who led the deal for Tiger Global, said: “Nothing is rewriting the rules of consumer electronics by embedding AI at the heart of hardware. With its unique design ethos, growing community and bold vision, the company is positioned to shape the next decade of consumer tech.”
Amy Ingham
Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.
