Nothing has raised $200 million in a Series C funding round led by Tiger Global, pushing the London-based smartphone startup’s valuation to $1.3 billion. The round also saw participation from long-time backers GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry, alongside new investments from Qualcomm Ventures and Nikhil Kamath. This latest infusion brings Nothing’s total funding to more than $450 million.
Founded by Carl Pei, formerly of OnePlus, Nothing has positioned itself as a design-driven alternative in a market dominated by a handful of global players. The company has leaned heavily on aesthetic differentiation, particularly its transparent hardware design, as a way to stand apart from competitors. According to the company, that approach has helped it surpass $1 billion in cumulative sales earlier this year.
The recently launched Phone (3) marked only the second time one of its smartphones was widely distributed in the United States, a market where gaining traction has proved difficult for challengers. Still, early investors appear encouraged by the progress. Highland Europe’s Tony Zappalà noted that Nothing’s recognition within the industry now provides leverage in talent acquisition and supply chain negotiations, both crucial to scaling.
What stands out in this round, however, is Nothing’s clear pivot toward artificial intelligence. The company has spoken about building an operating system with AI woven into the core experience, rather than layering it on as a series of features. So far, the execution has been modest, with elements like Essential Search—a tool designed to unify device-wide information retrieval—but the ambition is broader. Leading this push is Sélim Benayat, formerly of Linktree and Bento, who now heads Nothing’s AI services division.
The challenges are significant. As Zappalà points out, building trust in AI-driven experiences goes beyond technical hurdles. Consumers must feel confident in the outputs if AI features are to become indispensable rather than gimmicky. Even Apple has faced setbacks in seamlessly integrating AI into its ecosystem, highlighting how difficult it is to move beyond buzzwords to reliable, everyday functionality.
Despite this, Pei remains convinced that smartphones will remain the central platform for consumer AI applications for at least the next three to five years. With the new capital, Nothing plans to launch its first AI-focused device in 2026. Whether it can succeed where others have stumbled is an open question. Humane’s AI Pin was ultimately acquired by HP after struggling to find an audience, and Rabbit’s R1 required substantial software updates after an underwhelming debut.
For Nothing, the next phase is not just about sustaining its design-forward reputation but proving it can deliver meaningful AI integration in a way that customers find both useful and trustworthy.
