Smartphone startup Nothing announced Monday that it has closed a $200 million Series C round led by Tiger Global, valuing the company at $1.3 billion. Other participants included GV, Highland Europe, EQT, Latitude, I2BF, Tapestry, Qualcomm Ventures, and Indian investor Nikhil Kamath. With this round, Nothing’s total funding surpasses $450 million.
Founded by Carl Pei, who also co-founded OnePlus, Nothing has built its reputation on design-focused smartphones with a transparent aesthetic and creative UI. The company’s latest handset, the Phone (3), was its second device to receive wide U.S. distribution. To date, Nothing has shipped 5.1 million units worldwide, with over a million in Q2 2025 alone. While its global share is under 1%, the company has captured 2% of India’s market, its largest base.
Tiger Global partner Matt Watcher said the firm invested because Nothing is “reimagining hardware and software with an AI overlay to position their products for the next era of personal technology.”
The startup also plans to open another community funding round, following previous rounds where it raised $11.5 million directly from users.
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Despite its modest market share, Nothing says it surpassed $1 billion in total sales earlier this year and is on a path to profitability. Early backers say its brand recognition is helping the company build strong supply chain partnerships and attract top talent.
Betting on AI
Looking ahead, Nothing plans to launch its first AI-native device in 2026. While few AI hardware products have succeeded, Humane sold to HP after its AI Pin struggled, and Rabbit has been iterating on its R1 device, Pei insists that smartphones will remain the dominant form factor for AI applications for the next three to five years.
To drive this vision, the company hired Sélim Benayat, former Linktree executive and Bento founder, to lead AI services. Current features like Essential Search hint at the future direction: an operating system that blends personalization and AI-powered functionality.
“Differentiation in design and user experience is resonating with our consumers,” Pei said. “We’re targeting the next generation, people who care about tech, creativity, and design.”
