Nothing Secures $200 Million to Push AI Smartphones and Beyond

Smartphone startup Nothing has gained huge popularity because of its unique smartphones. Now, the company has secured a major investment. Nothing announced it has closed its Series C round of $200 million, led by investment firm Tiger Global, most likely for AI smartphones. With this fresh funding, Nothing is now valued at $1.3 billion.

Other investors also joined the round. They include existing backers such as GV, Highland Europe, EQT, Latitude, I2BF, and Tapestry. New strategic support also came from Qualcomm Ventures and investor Nikhil Kamath. This brings Nothing’s total funding to over $450 million since its launch.

The company was founded by Carl Pei, who also co-founded OnePlus. His vision has always been to build high-performance devices with unique designs. So far, design has been the strongest factor that sets Nothing apart.

Nothing Secures $200 Million to Push AI Smartphones and Beyond

Tiger Global’s partner Matt Watcher praised the company’s direction. He said Nothing is reimagining hardware and software with an AI overlay to lead in the next era of technology. He added that Tiger Global is excited to partner with the team as they build AI-native experiences.

Nothing also announced that it will soon launch another community funding round. In the past, the company raised over $11 million through community participation.

Earlier this year, Nothing said it had crossed $1 billion in sales. Investors believe the startup is on a good path toward profitability. An early backer told TechCrunch that the company’s growth has been impressive and sustainable.

Nothing has spent much of its early years building a supply chain and infrastructure that allows it to launch products quickly and ship globally. Its Phone (3), launched this year, is only the second model from the brand to be widely available in the U.S. market.

Globally, the brand still holds a market share of less than 1%. But in India, its biggest market, it has achieved a 2% share. According to IDC, Nothing has shipped 5.1 million devices so far, with over 1 million units shipped in Q2 2025 alone. However, around 80% of its sales are still in Asia, showing its international expansion has been slow.

Carl Pei said the company is targeting the next generation of users. These consumers care about technology, creativity, and design. He believes Nothing has struck the right chord with this group.

See also; Nothing Phone (3) PTA Tax and Customs Duty in Pakistan

Investors agree. Highland Europe’s Tony Zappalà said Nothing has delivered on its promises and built a strong name in the industry. This helps the company attract talent and form valuable supply chain partnerships.

The company is also working on building its own AI-focused operating system. Current features include Essential Search, a smart tool that helps users quickly find information across devices. To lead AI efforts, Nothing has hired Sélim Benayat, a former executive from Linktree.

Still, challenges remain. Experts point out that AI-first operating systems must earn user trust. People need to rely on AI outputs without double-checking them. Even Apple has struggled to bring AI into its products effectively.

Pei believes smartphones will remain the main platform for consumer AI for at least the next three to five years. To prove this vision, Nothing plans to launch an AI-first device in 2026.

The road won’t be easy. Other AI hardware companies, such as Humane and Rabbit, have struggled to gain traction. But with strong funding and a growing customer base, Nothing is betting it can do better.