Nothing Secures $200M Series C Funding from Tiger Global, Aims for AI-Driven Device Launch
Smartphone startup Nothing has successfully closed its Series C funding round, raising an impressive $200 million, primarily led by investment firm Tiger Global. This latest funding round has propelled the company’s valuation to $1.3 billion. With contributions from notable investors, including GV, Highland Europe, and Qualcomm Ventures, Nothing has now amassed over $450 million in total funding since its inception.
Funding and Growth Trajectory
The Series C funding round saw participation from both existing and new investors, highlighting the confidence in Nothing’s growth potential. Founded by Carl Pei, who co-founded OnePlus, the company has made significant strides in the consumer electronics market. The latest investment is a testament to the startup’s innovative approach to technology and design. Matt Watcher, a partner at Tiger Global, expressed excitement about partnering with Nothing, emphasizing the company’s vision of integrating AI into hardware and software to create next-generation personal technology.
Nothing’s unique design philosophy has contributed to its success, with the company reporting over $1 billion in total sales earlier this year. An early investor noted satisfaction with the company’s growth trajectory and its path toward profitability. The startup has focused on building a robust supply chain and infrastructure, enabling it to launch products quickly and distribute them globally. Its recent release, the Phone (3), showcases the brand’s signature transparent design and user interface, marking its second handset to be widely available in the U.S. market.
Targeting the Next Generation
Carl Pei has articulated a clear vision for Nothing, aiming to attract a younger demographic seeking alternatives to established brands. He believes that the company’s distinctive branding and product differentiation resonate well with tech-savvy consumers interested in creativity and design. During the Phone (3) launch, Pei highlighted the importance of connecting with this audience, stating that the brand’s unique approach has found a strong following among the next generation of users.
Highland Europe partner Tony Zappalà, who has been involved with Nothing since its early days, praised the company’s ability to deliver on its promises. He noted that Nothing has established itself as a recognized name in the industry, which provides advantages in attracting talent and building essential supply chain relationships. This recognition is crucial as the company continues to expand its presence in the competitive consumer electronics market.
AI Vision and Future Plans
Looking ahead, Nothing aims to develop an operating system that incorporates AI and personalization features, potentially extending beyond smartphones. Currently, the company has introduced limited AI functionalities, such as Essential Search, which enhances user experience by facilitating information retrieval across devices. To spearhead its AI initiatives, Nothing has appointed Sélim Benayat, a former executive from Linktree, to lead its AI services efforts.
Zappalà acknowledged the challenges of creating an effective AI-first experience, emphasizing that it involves both technical and customer trust issues. He pointed out that many companies, including industry giants like Apple, have faced difficulties in seamlessly integrating AI features into their operating systems. For Nothing, the goal is to strike a balance between innovation and user-friendliness while implementing AI capabilities.
Pei remains optimistic about the role of smartphones in delivering AI solutions, asserting that they will continue to be the primary platform for consumer AI applications in the coming years. With the recent funding, Nothing plans to launch an AI-first device next year, although the AI hardware sector has seen mixed success stories. The company is poised to navigate these challenges as it strives to establish itself as a leader in the evolving landscape of AI-driven technology.
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