Smartphone startup Nothing raises $200 million Series C
London-based consumer electronics startup Nothing has closed a $200 million Series C round led by Tiger Global, pushing its valuation to $1.3 billion. The round also saw participation from existing backers GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry, alongside new strategic investors including Nikhil Kamath and Qualcomm Ventures. With this latest funding, Nothing has now raised more than $450 million in total.
Founded by Carl Pei, co-founder of OnePlus, Nothing has built its reputation on bold design and differentiation in a smartphone industry dominated by legacy players. Pei says the company is targeting “the next generation” of consumers — those who care about creativity, design, and new experiences beyond the incumbents.
“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,” said Matt Watcher, a partner at Tiger Global.
Growth and Market Presence
Since launching its first phone in 2021, Nothing has shipped more than 5.1 million units worldwide. The company has gained particular traction in India, its largest market, where it holds 2% market share according to IDC. Globally, however, its share remains below 1%, with 80% of its shipments still concentrated in Asia.
Its newest flagship, the Phone (3), introduced in July 2025, continues the brand’s hallmark transparent aesthetic and custom interface. The device marked only the company’s second U.S. general release, underscoring its gradual but deliberate global expansion.
Despite its relatively small footprint, Nothing says it surpassed $1 billion in cumulative sales earlier this year. Early backers remain optimistic about the company’s trajectory toward profitability.
Strategic Focus: AI and Personalization
While Nothing has distinguished itself through hardware design, its next chapter leans heavily on AI integration. The startup has begun embedding features such as Essential Search — a device-wide intelligent search tool — and has hired Sélim Benayat, former Linktree executive and founder of Bento, to lead AI services.
The ambition: to build an AI-first operating system that could extend beyond smartphones, offering personalized and adaptive experiences.
Still, the challenges are steep. Apple and other incumbents have struggled to seamlessly integrate AI into operating systems. Highland Europe’s Tony Zappalà, an early investor, noted that success depends not only on technical execution but also on building trust so that users don’t feel the need to second-guess AI outputs.
Pei, however, remains confident that smartphones will remain the dominant delivery platform for consumer AI for the next three to five years.
What’s Next
With fresh capital in hand, Nothing plans to accelerate its AI-first strategy and launch a dedicated AI device in 2026. That puts it in direct comparison with experimental players like Humane and Rabbit — both of which have faced difficulties bringing standalone AI hardware to market.
The company also announced plans for another community funding round, following earlier campaigns that raised $11.5 million from retail investors eager to back the brand.
If Nothing can translate its design-forward ethos into meaningful AI-powered experiences, it may carve out a space in an industry where few startups have managed to thrive. For now, with $200 million in fresh backing and the support of heavyweight investors, Pei’s vision for “the next generation of tech users” has momentum.
