By Supantha Mukherjee

STOCKHOLM, Sept 16 (Reuters) - London-based smartphone

maker Nothing on Tuesday raised $200 million from a group of

investors led by Tiger Global at a valuation of $1.3 billion as

it seeks to integrate artificial intelligence in its products.

The global smartphone market is dominated by the likes of

Apple ( AAPL ) and Samsung, with just a handful of

European companies such as Fairphone and HMD Global trying to

challenge the incumbents.

Swedish tech entrepreneur Carl Pei founded Nothing in 2020

after leaving mobile maker OnePlus and launched its first

smartphone in 2022.

Since then, the company has also launched earbuds, shipped

millions of devices and crossed $1 billion in total sales.

"For AI to reach its full potential, consumer hardware must

reinvent itself alongside it," Pei said in a statement.

"We are starting with smartphones, audio products and smart

watches ... in the future, our operating system will carry into

smart glasses, humanoid robots, EVs, and whatever comes next."

Existing shareholders GV, Highland Europe, EQT, Latitude,

I2BF and Tapestry participated in the funding round.

The company last raised close to $100 million in 2023.