Nothing closes $200M Series C led by Tiger Global, plans AI-first device launch

Nothing, a rising smartphone manufacturer, has successfully closed a Series C funding round totaling $200 million, spearheaded by investment firm Tiger Global. This latest capital infusion values the consumer electronics company at an impressive $1.3 billion. Notable participants in this funding round included existing investors such as GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry, alongside new strategic partners like Nikhil Kamath and Qualcomm Ventures. With this new funding, Nothing has now amassed over $450 million in total financing. Matt Watcher, a partner at Tiger Global, expressed enthusiasm for the collaboration, stating, "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. We’re excited to partner with this exceptional team as they pioneer AI-native experiences." The company, co-founded by Carl Pei — previously known for his role in establishing OnePlus — has focused on distinguishing itself through innovative design. Earlier this year, Nothing reported surpassing $1 billion in total sales. An early investor highlighted the startup's promising growth path and its strategy toward profitability. Nothing has concentrated on developing a robust supply chain and infrastructure, preparing to launch new products globally in the coming months. Their recently unveiled Phone (3) stands out with its signature transparent design and unique user interface, marking only the company's second phone available in the U.S. market. Pei aims to resonate with a younger audience looking for alternatives to mainstream brands. He noted, "The way we’ve differentiated our brand and products is truly connecting with our target consumers. They are tech-savvy, creative, and design-conscious." Tony Zappalà, a partner at Highland Europe, remarked on Nothing's growth and potential within the competitive tech landscape, asserting that the company has established itself as a recognized name in the industry, which aids in attracting talent and fostering supply chain relationships. Looking ahead, Nothing plans to create an operating system enriched with AI and personalization features that may extend beyond smartphones. While glimpses of AI have appeared in their current operating system, such as the Essential Search function, the company acknowledges the challenges of delivering a seamless AI-first experience. Pei believes smartphones will continue to be the primary platform for consumer AI applications for the next several years. Following this funding announcement, Nothing has revealed intentions to launch an AI-centric device next year, despite the prevailing challenges in the AI hardware sector, as seen with other startups struggling to establish their products successfully.