The modern smartphone manufacturer Nothing has reached a valuation of $1.3 billion following a $200 million funding round led by Tiger Global.
With this new financing, Nothing’s total fundraising has now surpassed $450 million. The startup was founded by Carl Pei, who previously co-founded OnePlus. Thanks to its distinctive design and technological approach, Nothing has quickly gained attention in the smartphone market. Earlier this year, the company’s total sales exceeded $1 billion. While its global market share remains below 1%, in India—its largest market—the share has climbed to around 2%.
The Future of Smart Devices: Artificial Intelligence
The company plans to direct most of this new investment toward developing AI-powered products. Nothing has already announced that it will launch a device entirely based on artificial intelligence next year.
Matt Watcher of Tiger Global commented: “Carl and his team are reimagining personal technology by combining hardware and software with artificial intelligence. We are very excited to work with them to create AI-driven experiences.”
Nothing has begun testing AI features in its operating system. One example is “Essential Search,” an intelligent search tool designed to help users locate information across their devices. To strengthen its AI strategy, the company recently appointed Salim Benayat as a new executive director to lead its artificial intelligence initiatives.
However, the AI hardware market remains challenging. For instance, the startup Humane sold itself to HP following the failure of its “AI Pin” device, while Rabbit continues to address issues with its R1 device.
Despite these setbacks, Carl Pei believes that smartphones remain the best platform for AI applications and will continue to do so for the next three to five years. Nothing aims to advance in this field and appeal to a younger generation of users to set itself apart in the competitive market.
In conclusion, with this significant investment, Nothing is positioning itself not just as a smartphone manufacturer but as a tech startup centered on artificial intelligence—a move that signals its ambition to intensify competition in the years ahead.
