Nothing Secures $200M Series C Funding as It Gears for AI-Native Devices
Nothing, the UK-based consumer electronics startup founded by Carl Pei, has raised $200 million in a Series C round at a $1.3 billion valuation, with Tiger Global leading the investment.
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| Photo Credits: Nothing |
The company reports that it has already surpassed $1 billion in cumulative revenue this year. Revenue in 2024 grew by roughly 150 percent year-on-year.
Nothing founder Carl Pei describes this round as the start of Nothing’s “next phase” in which hardware and software will become more tightly integrated under an AI-native platform strategy.
Existing backers GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry joined the round. New strategic input came from Qualcomm Ventures and Indian investor Nikhil Kamath.
According to published figures, the company has already shipped millions of devices, including smartphones, earbuds, and wearables.
In India, its market share is rising, while globally it remains a niche name.
Future plans include launching “AI-native devices” next year, beyond its existing product line. Pei expects operating systems to become highly personalized, with interface behaviours adapting to user context.
Nothing is at a crossroads. Having achieved impressive growth metrics, the startup faces two big tasks: scaling profitably in hardware and delivering on promises of software innovation that rival incumbents.
Big brands like Apple and Samsung dominate device reliability, supply chain maturity, and customer trust. Nothing’s design focus and pricing strategy have won attention and a loyal following, but margins in smartphones tend to be thin.
Investors backing this round seem convinced that Nothing can pull this off. The presence of strategic investors (Qualcomm, Kamath) suggests alignment around both hardware capabilities and regional market expansion. The plan to launch AI-native devices signals that Nothing does not intend merely to add features onto existing OS layers but to rethink device behaviour and experience.
If the personalized OS vision works, it could shift how consumers view hardware ecosystems. But risk remains: software infrastructure is costly, user expectations are high, and AI-driven interactions face scrutiny over privacy, reliability, and latency.
For India, Nothing’s continued expansion is a potential win. Manufacturing and sales in India give cost advantages and proximity to large, growing consumer segments.
That could help Nothing achieve scale faster than many Western hardware startups.
What to Watch?
- Can Nothing deliver stable, useful AI functionality that isn’t gimmicky
- How margins behave when scaling hardware supply and support globally
- Whether “AI-native” devices beyond phones and wearables materialize soon
- Response from users and regulatory authorities regarding privacy and AI behavior
Nothing’s move is bold.
If execution holds, the firm may redefine some expectations for hardware-software synergies.
If not, it risks overextension.
Either way, this funding round raises the stakes.
