Roughly one in three adults in the United States regularly gets insufficient sleep. This widespread issue is driving significant demand for tools that can monitor, analyze, and enhance rest. Founded in 2014, EightSleep offers AI-powered sleep technology products designed to transform a bed into a preventive health device.
The New York-based startup recently announced a new funding round of one hundred million dollars. This investment came from a group of investors including HSG, Valor Equity Partners, Founders Fund, and Y Combinator, as well as athletes like Ferrari F1 driver Charles Leclerc and McLaren Racing CEO Zak Brown. With this latest round, the company has raised a total of approximately two hundred and sixty million dollars. It previously raised an eighty-six million dollar Series C round in 2021, which gave it a post-money valuation of five hundred million dollars.
Eight Sleep stated that it is now approaching unicorn territory and that its valuation has doubled since its last funding round. The company’s co-founder and CMO, Alexandra Zatarain, explained that achieving unicorn status will naturally follow if they successfully execute their AI roadmap, launch internationally, and develop condition-specific interventions.
The company’s core product is the Pod, a smart mattress that integrates software and artificial intelligence to track and enhance sleep quality. The Pod measures sleep stages, heart rate, breathing patterns, and movement. Using these insights, it automatically adjusts the bed’s temperature, elevation, and firmness. It can also detect snoring and automatically elevate the head of the bed in response.
Since launching the Pod in 2019, Eight Sleep has generated over five hundred million dollars in sales from the product and expanded its revenue tenfold. The company has also collected insights from over one billion hours of recorded sleep data. With just over one hundred full-time employees, the company is expanding its technology with a new feature called Sleep Agent. This AI-driven system uses large language models to create thousands of digital twins for each user to predict outcomes and optimize nightly recovery, shifting the technology from reactive tracking to proactive, personalized intervention.
The sleep technology market includes a range of competitors, from wearable devices like Oura, Fitbit, and Apple Watch, to medical-focused companies like ResMed, and other smart mattress makers like Sleep Number and ChiliSleep. Eight Sleep’s core differentiator is its Autopilot system, which builds a personal blueprint for each user from the first night and continuously adapts to factors like seasonality, travel, stress, and illness, working independently for each side of the bed.
The new funding will be used to accelerate growth in the medical sector by building on the Pod’s health-monitoring capabilities. Its Health Check feature can monitor cardiovascular and respiratory patterns with up to ninety-nine percent accuracy without wearable devices. The company emphasizes that it is not replacing doctors but is instead providing nightly, high-accuracy health monitoring so users can act early if trends shift, with the data serving to complement medical care over time.
Eight Sleep has also launched a Hot Flash Mode, which uses AI-driven cooling to relieve menopause symptoms. The company is additionally developing contactless solutions for sleep apnea and is pursuing FDA approval. It plans to utilize the Pod’s real-time biometric monitoring to deliver these personalized interventions.
The company currently ships its products to over thirty countries, including Canada, the United Kingdom, European Union nations, Australia, Mexico, and the United Arab Emirates. It is now planning to expand into China, which it sees as one of the world’s largest consumer markets with a growing health-conscious middle class that prioritizes sleep and overall wellness.
Regarding the privacy of sensitive health data, the company states that it complies with all local regulations for data storage. All user data is encrypted, never sold, and kept fully private. The company complies with GDPR and CCPA regulations and notes that, unlike many other devices, it does not use microphones. Its biometric sensors are embedded in the bed surface, providing passive, high-accuracy insights without the need for wearables.