Eight Sleep Secures $100M Series D for AI-Powered Sleep Tech Growth
Eight Sleep, a company at the forefront of “sleep fitness” technology, has successfully closed a Series D funding round, securing an additional $100 million. This latest capital infusion, led by HSG with participation from notable investors including Valor Equity Partners, Founders Fund, Y Combinator, Khosla Ventures, and SoftBank, brings the New York-based startup’s total funding to over $260 million. The round also drew interest from prominent figures in sports and entertainment, such as Ferrari F1 driver Charles Leclerc, McLaren Racing CEO Zak Brown, and actor Kevin Hart. While Eight Sleep chose not to disclose its current valuation, the company was last valued at approximately $500 million following its $86 million Series C round in August 2021.
Founded in 2014, Eight Sleep positions itself as a “sleep-fitness company,” integrating technology, human physiology, and data analytics to enhance sleep quality and overall health. Its flagship product, the Pod, is a smart mattress equipped with embedded sensors that passively collect comprehensive data on sleep patterns and trends. The company demonstrated foresight in the sleep technology space, launching an AI-powered sleep coach as early as 2018. This coach provides users with personalized insights, such as deviations from their average sleep duration or reduced REM sleep, and offers actionable recommendations like adjusting bedtime.
Beyond merely selling a bed, Eight Sleep’s offerings have evolved significantly. The Pod’s smart bed cover features automatic temperature adjustments and can modify elements like elevation and sound in real time to suit individual needs. Crucially, it monitors key health metrics with clinical-grade accuracy without requiring users to wear any devices. The company has since expanded its ecosystem to include a software membership tied to the Pod and a range of products addressing diverse sleep challenges. Earlier this year, for instance, Eight Sleep introduced its first line of supplements, developed in collaboration with Dr. Peter Attia, co-founder and chief medical officer of Biograph, designed to naturally aid sleep without prescription medications.
Financially, Eight Sleep has reported substantial growth, with its founders stating that revenue has increased tenfold since 2020. The Pod alone has generated over $500 million in revenue to date, and the company achieved free cash flow positive status in the first half of 2025, indicating it is generating more cash than it spends.
Looking ahead, the new funding will fuel Eight Sleep’s ambitious plans for global expansion and technological advancement. With a customer base already spanning over 30 countries, including the United Kingdom, Australia, Mexico, and the United Arab Emirates, the company is now targeting new markets such as China and Singapore. A significant portion of the investment will be directed towards supercharging its AI roadmap. This includes the development of an advanced “sleep agent” capable of interpreting biometric data and simulating thousands of “digital twins” per user. This sophisticated modeling aims to predict outcomes and intelligently adjust variables like temperature, elevation, and bedtime routines nightly to optimize recovery. This builds upon the company’s existing Autopilot feature, which already makes millions of subtle adjustments based on user behavior and biofeedback.
Moreover, Eight Sleep intends to leverage its Pod’s health-monitoring capabilities, which track cardiovascular and respiratory patterns, to enter the medical space. The company is developing AI-powered solutions specifically for medical sleep challenges, initially focusing on menopausal sleep and sleep apnea, with plans to seek FDA approval for certain applications. Currently employing just over 100 full-time staff, Eight Sleep anticipates increasing its workforce with the new capital.
Eight Sleep’s successful funding round reflects a broader trend of investor confidence in the sleep technology sector. Over the past few years, hundreds of millions of dollars have been poured into companies developing treatments for sleep-related ailments and technologies aimed at improving sleep quality. Oura, known for its popular wearable rings that record and analyze biometric data, stands as a prominent example in this domain, having raised $348 million in equity funding to date, including a $200 million Series D round in November.