Sleep tech company Eight Sleep has raised 50 million dollars in a strategic funding round led by Tether Investments. This new investment values the company at 1.5 billion dollars.
This latest round follows a 100 million dollar round the startup closed last August from investors including HSG, Valor Equity Partners, Founders Fund, and Y Combinator. The company did not disclose its valuation for that previous round. However, it was valued at 500 million dollars in 2021 when it raised an 86 million dollar Series C round led by Valor Equity Partners. To date, Eight Sleep has raised over 310 million dollars.
The company sells smart mattress accessories that track sleep patterns and adjust temperatures throughout the night. Eight Sleep reported it was free-cash-flow positive in 2025 and plans to use the new funding for developing new products, expanding globally, and pursuing clinical validation. Its products currently ship to over 34 countries.
Eight Sleep aims to expand beyond consumer products and has sought approval from the U.S. Food and Drug Administration for products designed to detect and mitigate sleep apnea. The company’s co-founder and CEO, Matteo Franceschetti, stated their goal is to build the defining health technology company of this generation by creating a system that understands the body better each night and acts on that knowledge.
A key initiative is developing a sleep-focused AI agent. This agent would proactively control the temperature, elevation, and firmness of its products to prevent sleep disruption. It would simulate various scenarios before users get into bed to prepare the system for optimal sleep.
The company’s models are trained on proprietary data. Early pilots of its AI-driven guidance have reportedly led users to change habits like exercise timing, caffeine intake, or sleep schedules based on the app’s analysis.
Last year, Eight Sleep launched a hydro blanket for temperature control and a new pillow cover that provides temperature control for the head and neck.
The company faced controversy last October when an AWS outage caused users’ mattress accessories to stop working because they could not connect to its servers. This led to beds overheating, prompting Eight Sleep to add an “outage mode” to its products for such situations.
Eight Sleep competes with companies like BedJet and Chillpad in the mattress temperature control market, and with Oura and Whoop in the sleep tracking segment.