Smartphone manufacturer Nothing has raised $200 million in Series C funding at a $1.3 billion valuation to accelerate development of artificial intelligence-integrated hardware and operating systems.
The London-based company, founded by former OnePlus co-founder Carl Pei, plans to transform from a hardware manufacturer into a platform that integrates AI capabilities across smartphones, audio products and wearable devices.
Nothing achieved over $1 billion in total sales at the beginning of 2025, representing 150% growth during 2024 after shipping millions of devices since its 2021 establishment. The company positions itself as the only independent smartphone manufacturer to emerge successfully in the past decade.
Tiger Global led the funding round with participation from existing investors including GV, Highland Europe, EQT, Latitude, I2BF and Tapestry, alongside new strategic backing from Nikhil Kamath and Qualcomm Ventures.
Pei outlined his vision for personalised operating systems that adapt to individual user contexts and requirements. The founder anticipates a shift away from current standardised mobile experiences towards customised interfaces.
“We see a future where operating systems are significantly different from the ones today. Each system will know its user deeply, and be hyper-personalised to each individual,” Pei stated in the announcement.
The company’s AI strategy centres on leveraging smartphone contextual data and user knowledge to create more responsive experiences. Nothing believes smartphones will remain central to the AI era due to their access to personal information and usage patterns.
Future development will extend the AI-native operating system across multiple device categories, beginning with existing product lines before expanding into smart glasses, electric vehicles and robotic applications.
Nothing plans to launch its first AI-native devices in 2026, representing a new category designed to capture context across different input methods and generate adaptive interfaces based on user objectives.
The funding enables expanded research and development alongside increased global distribution capabilities. Nothing also announced plans for a community funding round allowing existing supporters to participate in the company’s growth.
