London-based consumer technology company Nothing has raised USD 200 million in a Series C funding round, valuing the startup at USD 1.3 billion. The investment, led by existing and new investors, comes as the company positions itself for its next phase of growth, transitioning from being an independent smartphone manufacturer to developing an AI-native platform where hardware and software function as a unified intelligent system.
Building a base in hardware
Founded by OnePlus co-founder Carl Pei, Nothing has attempted to establish itself as the first independent smartphone company to emerge in the last decade. In a statement, Pei noted that building a hardware business at scale was key to preparing for the next technological shift.
“We had a thesis that if we could build a smartphone business at scale and own the last-mile distribution point in consumer tech, we would be well-positioned for the next technology shift. Although we didn’t know what that would look like at the time, the opportunity is now crystal clear,” he said.
He added that the process required a team that could balance pragmatism in launching products quickly with the innovation necessary to build experiences that resonate with its community.
Since its launch in 2020, the company has shipped millions of devices, reaching more than USD 1 billion in cumulative sales by early 2025. Nothing said its revenue grew 150 per cent in 2024. The firm has built a global supply chain and manufacturing network, with products ranging from smartphones to wireless earbuds.
AI ambitions
Nothing argues that despite rapid advances in artificial intelligence over the past three years, the smartphone experience has evolved little beyond incremental improvements in photography, translation and voice assistants.
Positioning the smartphone as “one of the most important devices in the AI era” because of its access to user context and knowledge, the company outlined its vision of hyper-personalised operating systems that adapt to each user.
Instead of a one-size-fits-all model, “a billion different operating systems will be rendered for a billion different people.” Nothing said. Over time, the OS will extend across devices such as smartwatches, audio products and, eventually, smart glasses, humanoid robots and electric vehicles.