Eight Sleep raises $50 million at a $1.5 billion valuation

Sleep technology company Eight Sleep said today it has raised $50 million in a $1.5 billion strategic round led by Tether Investments. This new round comes after the startup closed a $100 million round last August from investors such as HSG, Valor Equity Partners, Founders Fund, and Y Combinator.

The startup, which sells smart mattress accessories that can track your sleep patterns and adjust temperatures while you sleep, did not disclose its valuation for its previous round, but was valued at $500 million after money in 2021 when it raised an $86 million Series C led by Valor Equity Partners. The company has raised more than $310 million to date, according to Crunchbase.

Eight Sleep said free cash flow was positive in 2025, and it plans to use the new financing for new products, global expansions and clinical validation. The company currently ships its products to more than 34 countries.

The company said it wants to expand beyond selling consumer products, and has requested US Food and Drug Administration approval for products that can detect and relieve sleep apnea.

“What we’re building doesn’t exist yet — a system that understands your body better every night and acts on that knowledge,” Matteo Franceschetti, co-founder and CEO of Eight Sleep, said in a statement. “Our goal is to build this generation’s defining health technology company.”

The company said it wants to work on a sleep-focused artificial intelligence agent that proactively controls the temperature, altitude and hardness of its products and prevents sleep disruption. She said the agent simulates several scenarios before users get into bed and prepares its products for optimal sleep.

Eight Sleep said its models are trained on private data, and early trials of its AI guidance have led people to change their habits, such as exercise timing, caffeine intake or sleep schedules, based on analysis provided by the app.

Last year, the company launched a temperature-controlled water blanket and a new pillowcase that can control the temperature of the head and neck.

Eight Sleep was hit with controversy last October when users’ mattress accessories stopped working due to an AWS outage in which they were unable to connect to its servers. The beds overheated, and the company had to add a “blackout mode” to its products for such situations.

Eight Sleep competes with companies like BedJet and Chillpad on the mattress and temperature control interface, and with Oura and Whoop in the sleep tracking market.