In the United States, approximately one-third of adults consistently experience inadequate sleep, highlighting a growing need for innovative solutions that monitor, analyze, and enhance sleep quality. Addressing this demand, Eight Sleep, a New York-based startup established in 2014, has developed AI-powered sleep technology designed to transform beds into proactive health devices.
On August 19, 2025, Eight Sleep announced a significant milestone: securing a $100 million funding round. This investment was led by prominent entities such as HSG, Valor Equity Partners, Founders Fund, and Y Combinator. Notably, the round also attracted investments from high-profile athletes, including Ferrari Formula 1 driver Charles Leclerc and Zak Brown, CEO of McLaren F1.
This latest infusion of capital brings Eight Sleep’s total funding to approximately $260 million. In 2021, the company raised an $86 million Series C round, which valued the company at $500 million post-money. While specific valuation figures for the current round were not disclosed, Eight Sleep indicated that its valuation has doubled since the previous round. Co-founder and Chief Marketing Officer Alexandra Zatarain expressed confidence in the company’s trajectory, stating, If we successfully execute our AI roadmap, launch internationally, and develop condition-specific interventions, achieving unicorn status will naturally follow.
Eight Sleep’s flagship product, the Pod, is a smart mattress that integrates advanced software and artificial intelligence to monitor and enhance sleep quality. The Pod is equipped with features that measure various sleep metrics, including sleep stages, heart rate, breathing patterns, and movement. Utilizing these insights, the Pod automatically adjusts its temperature, elevation, and firmness to optimize the user’s sleep environment. Additionally, it can detect snoring and respond by elevating the base to alleviate the condition.
Since the launch of the Pod in 2019, Eight Sleep has achieved remarkable growth. The company reports generating over $500 million in Pod sales and expanding its revenue tenfold. Furthermore, Eight Sleep has amassed a substantial dataset, collecting insights from over one billion hours of recorded sleep data.
With a team of just over 100 full-time employees, Eight Sleep is now venturing beyond the Pod with the introduction of Sleep Agent. This AI-driven system leverages large language models to create thousands of digital twins for each user, enabling the prediction of outcomes with the goal of optimizing nightly recovery. This innovative approach marks a shift from reactive sleep tracking to proactive, personalized intervention. Zatarain elaborated on this development, stating, This approach shifts sleep technology from reactive tracking to proactive, personalized intervention.
The sleep technology market is highly competitive, featuring a range of products from wearable devices like Oura, Fitbit, and Apple Watch, to medical-focused companies such as ResMed, and other smart mattress manufacturers including Sleep Number and ChiliSleep. Eight Sleep distinguishes itself through its core feature, Autopilot, which builds 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, according to Zatarain.
The newly acquired funding is earmarked to accelerate Eight Sleep’s growth in the medical sector, building upon the Pod’s health-monitoring capabilities. The introduction of Health Check allows the system to monitor cardiovascular and respiratory patterns with up to 99% accuracy, all without the need for wearable devices. Zatarain emphasized the system’s role, stating, 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.
In addition to Health Check, Eight Sleep has launched Hot Flash Mode, an AI-driven cooling feature designed to relieve menopause symptoms. The company is also developing contactless solutions for sleep apnea and is pursuing FDA approval to utilize the Pod’s real-time biometric monitoring for delivering personalized interventions.
Currently, Eight Sleep ships its products to over 30 countries, including Canada, the United Kingdom, European Union nations, Australia, Mexico, and the United Arab Emirates. The company is now planning to expand into China, recognizing it as one of the world’s largest consumer markets with a growing health-conscious middle class that prioritizes sleep and overall wellness.
Regarding the handling of sensitive health data, Zatarain assured that the company complies with each locale’s regulations, including data storage requirements. She stated, Privacy is foundational. 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.
As Eight Sleep continues to innovate and expand, its AI-driven sleep technology aims to redefine the landscape of sleep health, offering users a proactive approach to achieving optimal rest and overall well-being.
