Nothing Secures $200M Series C Funding, Valued at $1.3 Billion for AI-Focused Smartphone Expansion
London-based smartphone startup Nothing announced today it has successfully closed a $200 million Series C funding round. The investment was led by Tiger Global, bringing the consumer electronics firm’s valuation to an impressive $1.3 billion.
The new financing attracted backing from existing investors such as GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry, while Nikhil Kamath and Qualcomm Ventures joined as strategic partners. With this round, the total funding secured by Nothing surpasses $450 million.
“Nothing’s innovative approach to hardware, software, and AI integration positions their offerings perfectly for the future of personal technology,” stated Matt Watcher, a partner at Tiger Global in comments to media outlets.
The company anticipates opening another community funding round soon. In previous rounds, it raised $11.5 million.
Nothing’s distinctive design approach has proven fruitful so far, with the startup reporting over $1 billion in total sales for this year. Early investors are pleased with the company’s growth trajectory and progress towards profitability.
Since its launch, Nothing has focused on constructing a supply chain and infrastructure to develop and distribute products quickly on a global scale. The recently released Phone (3), characterized by its transparent design aesthetic and unique user interface, was the startup’s second handset to be distributed widely in the U.S.
Despite holding less than 1% of the global market share, Nothing has managed to capture 2% in India, its largest market, according to analytics firm IDC. The company has shipped a total of 5.1 million units, with over a million units sold in Q2 2025. IDC notes that the startup’s global expansion has been slow due to 80% of sales still occurring within Asia.
Founder Carl Pei aims to appeal to the next generation of tech enthusiasts who may seek alternatives beyond established brands. “The distinctiveness of our brand and products is striking a chord with our consumer base, which is comprised of the next generation that values technology, creativity, and design,” Pei shared during the Phone (3)’s launch in July.
Highland Europe partner Tony Zappalà , an investor in the company, emphasized that Nothing has met its promises and shown potential for further growth within this vast industry. He added that the startup’s reputation has helped attract talent and foster supply chain relationships.
The company aspires to create an operating system incorporating AI and personalization features that may extend beyond smartphones. While glimpses of AI have been visible in its current system, such as Essential Search – a smart search function that retrieves information across devices – the startup has hired Sélim Benayat, formerly from Linktree and founder of Bento (a platform for personalized social media landing pages), to spearhead its AI services initiatives.
Zappalà highlighted the challenges in building an effective AI-centric user experience as both a technical challenge and a matter of earning user trust. “The difficulty lies in striking the right balance between innovation and usefulness while implementing AI features,” he stated.
Smartphones remain, in Pei’s opinion, the ideal medium for delivering AI experiences. He foresees them being “the dominant form factor for all consumer AI applications” for at least three to five years. With this latest funding announcement, Nothing plans to release an AI-centric device next year. However, the history of success in the AI hardware sector remains limited, as evidenced by AI startup Humane’s sale to HP after struggles with its AI Pin device and AI assistant company Rabbit’s ongoing efforts to improve its R1 device following initial dissatisfaction with its first iteration.
