Eight Sleep secures $100M for AI sleep tech expansion, nears unicorn status
The quest for sufficient rest is a growing challenge for many, with approximately one in three adults in the U.S. reportedly experiencing insufficient sleep. This widespread issue fuels significant demand for innovative tools that can monitor, analyze, and ultimately enhance sleep quality. At the forefront of this burgeoning sector is Eight Sleep, a New York-based startup founded in 2014, which aims to transform the humble bed into a sophisticated preventive health device through its AI-powered technology.
Eight Sleep recently announced a substantial $100 million funding round, drawing investments from prominent venture capital firms including HSG, Valor Equity Partners, Founders Fund, and Y Combinator. The round also saw participation from notable athletes such as Ferrari F1 driver Charles Leclerc and McLaren F1 CEO Zak Brown. This latest infusion of capital brings Eight Sleep’s total funding to an estimated $260 million, according to Pitchbook. The company previously secured an $86 million Series C round in 2021, which valued it at $500 million post-money. Eight Sleep now states it is “approaching unicorn territory,” indicating its valuation has doubled since its last funding round, moving it closer to a $1 billion valuation. Co-founder and CMO Alexandra Zatarain expressed confidence in this trajectory, telling TechCrunch, “If we successfully execute our AI roadmap, launch internationally, and develop condition-specific interventions, achieving unicorn status will naturally follow.”
At the heart of Eight Sleep’s offerings is its flagship product, the Pod, a smart mattress that seamlessly integrates advanced software and artificial intelligence to track and improve sleep. The Pod monitors crucial biometric data, including sleep stages, heart rate, breathing patterns, and movement. Leveraging these insights, the system automatically adjusts temperature, elevation, and firmness to optimize the sleeping environment. It can even detect snoring and subtly elevate the bed base in response, aiming to alleviate the disturbance. Since its launch in 2019, the Pod has generated over $500 million in sales, contributing to a tenfold increase in the company’s revenue. Eight Sleep has also amassed an impressive dataset, collecting insights from more than one billion hours of recorded sleep data.
With just over 100 full-time staff, Eight Sleep is now expanding its technological footprint beyond the Pod with the introduction of Sleep Agent. This AI-driven system utilizes large language models to create thousands of “digital twins” for each user, allowing it to predict outcomes and proactively optimize nightly recovery. This innovation represents a significant shift in sleep technology, moving from reactive tracking to personalized, predictive intervention, as highlighted by Zatarain.
The sleep technology market is a competitive landscape, featuring a diverse array of players from wearable devices like Oura, Fitbit, and Apple, to medically focused companies such as ResMed, and other smart mattress manufacturers including Sleep Number and ChiliSleep. Eight Sleep differentiates itself with its unique “Autopilot” feature, which Zatarain describes as building a “personal blueprint from night one, then adapts continuously, accounting for seasonality, travel, stress, training, illness, or even a bad night before. And it works independently for each side of the bed.”
The new funding will primarily fuel Eight Sleep’s accelerated growth in the medical sector, capitalizing on the Pod’s inherent health-monitoring capabilities. A key development in this area is Health Check, a system capable of monitoring cardiovascular and respiratory patterns with up to 99% accuracy, crucially, without requiring any wearable devices. Zatarain clarifies the company’s role: “We’re not replacing your doctor, but we are giving you nightly, high-accuracy health monitoring so you can act early if trends shift. Over time, this data can complement medical care.” The company is also innovating with features like the recently launched Hot Flash Mode, which employs AI-driven cooling to alleviate menopause symptoms, and is actively working on contactless solutions for sleep apnea. Eight Sleep is pursuing FDA approval for its technologies, aiming to leverage the Pod’s real-time biometric monitoring for personalized health interventions.
Beyond product development, Eight Sleep is strategically expanding its global reach. Currently shipping to over 30 countries, including Canada, the UK, EU nations, Australia, Mexico, and the UAE, the company now plans to enter the Chinese market. Zatarain noted that China, as one of the world’s largest consumer markets, is experiencing a surge in a health-conscious middle class that prioritizes sleep and overall wellness. Addressing concerns about sensitive health data, Zatarain emphasized the company’s robust privacy protocols. “Privacy is foundational,” she asserted. “All data is encrypted, never sold, and fully private. We comply with GDPR and CCPA, and unlike many devices, we don’t use microphones. Our biometric sensors are embedded in the bed surface — no wearables, no invasiveness, just passive, high-accuracy insights.”