Nothing, the uncommon tech startup co-founded by Carl Pei, has now raised an impressive $200 million in Series C funding. Combined with prior funding, this award brings the project’s total funding to over $450 million. The new round of capital will power the company’s lofty plans. They’re about to release a new product line that uses artificial intelligence (AI) throughout their hardware and software to enhance student experience and success. The investment has received strategic support from luminaries including Nikhil Kamath and Qualcomm Ventures.
The company has spent years focusing on building an extensive supply chain and distribution network. This initiative allows seamless product launches in as little as three months and maintains effective global shipping solutions. This strategy puts nothing in the path of the increasing consumer demand for devices that combine traditional hardware experiences and AI functionality.
Haven’t we already heard that narrative? He emphasizes that for the next three to five years, smartphones will be “the dominant form factor for all consumer AI applications.” This viewpoint is informed by our conviction that mobile devices have the power to enhance user experience with AI technology. They turn complex government jargon into something more accessible and approachable.
Literally nothing is going after today’s consumer. Simultaneously, the company is appealing to the next generation of users who can’t wait to find great alternatives to the same old legacy brands. Pei notes, “The way we’ve differentiated our brand and differentiated our products is really resonating with our group of consumers. We’re targeting the next generation. They’re interested in tech. They’re very much into design and creativity, and we just had a lot of resonance with that consumer segment.
The plug maker has come a long way since those early startup days. Just this year, they made their mark by surpassing 1 billion dollars in cumulative sales. While global market share for Nothing is under 1%, they’ve managed to secure ~2% of the Indian market. This segment is its biggest so far, according to data from the analytics firm IDC. As of March 2022, Nothing has sold over 5.1 million units. In Q2 2025, they did it over 1 million units shipped solely by themselves!
Plenty more products on the way – stay tuned! A first official image of the upcoming Nothing Phone 3 has just surfaced, revealing the cool new features that users have to look forward to. Tony Zappalà reflects on the challenges of creating effective AI-first experiences, stating, “I think the challenge of building an effective AI-first experience is not unique to Nothing. This is more than a technical challenge; AI features need to reach a stage where users are not double-checking the output.”
This new round of funding brings Nothing’s valuation up to $1.3 billion. Industry insiders are confident in the company’s path forward. Matt Watcher commented on Nothing’s vision: “Carl and the team at Nothing are reimagining hardware and software with an AI overlay to position their products for the next era of personal technology. We’re excited to partner with this exceptional team as they pioneer AI-native experiences.”
