Sleep tech company Eight Sleep has raised $50 million in a strategic funding round led by Tether Investments, pushing its valuation to $1.5 billion. The fresh capital follows a $100 million round the startup closed last August, backed by investors including HSG, Valor Equity Partners, Founders Fund, and Y Combinator.
Eight Sleep makes smart mattress accessories that monitor sleep patterns and automatically adjust temperature throughout the night. The company kept its valuation from the previous round under wraps, though it was last publicly valued at $500 million in 2021 following an $86 million Series C led by Valor Equity Partners. All told, Eight Sleep has now raised more than $310 million, according to Crunchbase.
The company reported positive free cash flow in 2025 and says the new funding will go toward product development, international growth, and clinical research. Its products currently ship to more than 34 countries.
Eight Sleep has ambitions that stretch well beyond consumer hardware. The company is actively seeking FDA approval for technology capable of detecting and managing sleep apnea a sign of its push into the medical space.
"What we're building doesn't exist yet a system that understands your body better each night and acts on that knowledge. Our goal is to build the defining health technology company of this generation," said co-founder and CEO Matteo Franceschetti.
On the AI front, Eight Sleep is developing a sleep-focused AI agent that proactively controls temperature, elevation, and firmness to minimize nighttime disruptions. The system runs through countless scenarios before a user even gets into bed, fine-tuning conditions for the best possible rest.
The company's models are trained on proprietary sleep data, and early pilots show real behavioral impact with users adjusting exercise timing, caffeine habits, and sleep schedules based on insights surfaced by the app.
Last year, Eight Sleep expanded its product lineup with a hydro blanket offering temperature regulation, along with a new pillow cover designed to keep the head and neck cool or warm throughout the night.
The company hasn't been without its stumbles, however. Last October, Eight Sleep found itself at the center of a controversy after an AWS outage cut off its products from the company's servers causing mattress accessories to stop working and, in some cases, overheat. The incident prompted Eight Sleep to roll out a dedicated "outage mode" to prevent similar disruptions in the future.
On the competitive landscape, Eight Sleep faces pressure from multiple directions. BedJet and Chilipad are its closest rivals in the mattress temperature control space, while Oura and Whoop go head-to-head with the company in the sleep tracking arena.
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