Earlier this month, Eight Sleep raised $50 million at $1.5 billion valuation.
Photo Credit: Eight Sleep
HSG, Valor Equity Partners, Founders Fund and Y Combinator also participated in the funding round
Eight Sleep, the New York-based sleep technology company, is planning to expand into the artificial intelligence (AI)-powered predictive sleep health space. The move comes after the startup raised $50 million (roughly Rs. 469.7 crore) in a funding round earlier this month. The company has announced that it is now looking into the sleep health space with its new offerings and technologies that are currently under development. It is also seeking approval from the US Food and Drug Administration (FDA) for a product that can detect and mitigate sleep apnea.
According to Tracxn data, Eight Sleep raised $50 million (roughly Rs. 469.7 crore) at a $1.5 billion (roughly Rs. 14,085 crore) valuation in a funding round that concluded on March 4. The round was led by Tether Investments, alongside HSG, Valor Equity Partners, Founders Fund, and Y Combinator.
The latest funding follows the startup's Series D round in August 2025, where it raised $100 million (roughly Rs. 939 crore), led by HSG. In total, Eight Sleep has raised more than $310 million (roughly Rs. 2,911.4 crore) and achieved a free cash flow positive status last year.
Announcing the funding, Eight Sleep highlighted that the company is now shifting its focus from sleep optimisation to AI-driven preventive health. It claimed that its products apply predictive intelligence directly to the human body, creating optimal conditions for recovery and minimising sleep disruption.
"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,” said Matteo Franceschetti, Co-founder and CEO of Eight Sleep.
The company said it is building a predictive AI agent that anticipates how a user's night will unfold and autonomously acts before disruption occurs. It is said to simulate thousands of scenarios, such as a warm room, late exercise, a large meal, and elevated stress, to optimise the sleep environment even before the user gets into bed.
This is different from its Pod, a flagship product which tracks biometrics to automatically adjust temperature and elevation to improve sleep in real-time. Eight Sleep calls it “reactive technology,” and instead, its future offerings will be able to analyse a user's behaviour and patterns to pre-adjust their sleeping condition before they hit the bed.
Interestingly, the company is also developing AI models trained on more than one billion hours of real-world sleep data from its users in a large number of countries. “Early pilots of daytime AI-driven guidance have already driven measurable behaviour change: nearly half of participants adjusted activity timing, caffeine intake, or sleep schedules based on automated insights,” the company said.
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