Eight Sleep announced a new strategic funding round led by Tether Investments, valuing the company at $1.5 billion, supporting its expansion from sleep optimization into a predictive AI-driven health platform.
The New York-based sleep technology company said the capital will accelerate development of AI models designed to anticipate disruptions to recovery and optimize sleep conditions before they occur. Eight Sleep plans to deploy the funding toward research and development, clinical trials, regulatory efforts, and expanding global commercial partnerships.
The announcement follows what the company described as a milestone year in 2025. Eight Sleep said it reached free cash flow positivity while launching three new products: Pod 5, Pod Pillow Cover, and Thermal Blanket. The company also expanded its products to 34 countries and conducted new clinical studies examining the impact of its sleep technology.
According to the company, two peer-reviewed studies found that the Pod reduced menopausal hot flashes by 56% and restored the body’s natural circadian temperature rhythm during sleep, improving cardiovascular recovery markers.
Eight Sleep’s Pod system tracks biometrics such as sleep stages, heart rate, and heart rate variability. The system currently adjusts mattress temperature and elevation in real time to improve sleep conditions throughout the night.
The company said it is now developing a predictive AI agent designed to anticipate how a user’s night will unfold. The system simulates thousands of scenarios, including room temperature changes, late exercise, large meals, and elevated stress levels, to optimize the sleep environment before the user goes to bed.
Eight Sleep said its models are trained on more than one billion hours of sleep data collected from users in over 35 countries. Early pilot programs using AI-driven daytime insights have already influenced user behavior, with nearly half of participants adjusting factors such as activity timing, caffeine intake, or sleep schedules based on automated recommendations.
The company is also pursuing regulatory pathways in the United States, including FDA filings for sleep apnea detection and mitigation. If approved, the Pod could transition from a consumer wellness device into a regulated health platform capable of screening, detecting, and intervening in sleep-related health conditions.
Eight Sleep said the new funding will support its long-term goal of expanding beyond sleep optimization to deliver broader predictive health insights.
KEY QUOTES
“Sleep was just the beginning. We’ve built the most advanced AI-powered health sensing system in the world — one that learns your body better every night and acts on that knowledge. This investment gives us the resources to take that intelligence beyond the bedroom and into every dimension of personal health. 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.”
Matteo Franceschetti, Co-Founder And CEO Of Eight Sleep
“We believe advanced personalized AI is the perfect pathway to understand and expand human potential. Eight Sleep has the potential to define the future of health tech by building intelligence that learns, scales, and evolves directly with humankind, turning advanced AI into practical, everyday insights and enhancements about core human biology. By helping people better understand sleep, recovery, and long-term health, Eight Sleep is laying the groundwork for a new standard in longevity-focused technology that is truly personalized, can function in any condition, directly on-device, resilient, and aligned with how people live. The age of human-first health intelligence has started.”
Paolo Ardoino, CEO Of Tether
