Backed by Tiger Global, Carl Pei’s London-based Nothing bags $200 million to scale AI-driven smartphones and gadgets, gearing up to challenge globally leading brands.
London-based smartphone maker Nothing has raised $200 million in fresh funding, led by US investment firm Tiger Global, valuing the company at $1.3 billion. The funding round also saw participation from existing backers, including GV, Highland Europe, EQT, Latitude, I2BF and Tapestry.
The company, founded in 2020 by Swedish entrepreneur Carl Pei after his exit from OnePlus, plans to use the funds to integrate artificial intelligence (AI) into its hardware ecosystem.
Nothing entered the smartphone market in 2022, but it has since expanded into audio products, launching earbuds and smart devices. To date, it has shipped millions of units and crossed $1 billion in cumulative sales.
The global smartphone market remains dominated by Apple and Samsung. Only a few European challengers, including Fairphone and HMD Global, are attempting to carve out market share. Against this backdrop, Nothing has sought to differentiate itself by focusing on design, user experience and now, AI-powered innovation.
Pei said in a statement that AI requires consumer hardware to ‘reinvent itself’ in order to realise its full potential. He added that Nothing’s current focus is on smartphones, audio products and smartwatches, but its operating system will eventually extend to future technologies, including smart glasses, humanoid robots and even electric vehicles.
The latest fundraising comes after the company secured close to $100 million in 2023. Analysts note that the sharp increase in valuation reflects investor confidence in the brand’s ability to scale beyond niche markets.
The capital injection will allow Nothing to compete more aggressively with larger rivals and accelerate its product roadmap, the industry believes.
With this funding, Nothing has joined the small group of European hardware players aiming to redefine consumer technology. Its success will depend on whether AI integration can deliver enough differentiation to win customers in a market where innovation cycles are short and competition is intense.
