Eight Sleep has raised $50 million at a $1.5 billion valuation to expand beyond sleep optimization into predictive, AI-driven health. Tether Investments led the strategic funding round, marking the company's second major raise in 12 months after securing $100 million last August at a $1 billion valuation.

Founded in 2014, the New York-based startup started with smart mattresses that use embedded sensors to track sleep patterns. The company has now raised over $250 million total, including an $86 million Series C round in 2021 when it was valued at approximately $500 million. Eight Sleep launched an AI-powered sleep coach in 2018 that provides personalized insights about sleep quality and patterns.

The fresh capital will fund expansion into broader health applications as Eight Sleep moves beyond the bedroom. CEO Matteo Franceschetti described 2025 as a milestone year when the company achieved free cash flow positivity and launched three new products: Pod 5, Pod Pillow Cover, and Thermal Blanket. The company aims to build what Franceschetti calls "the defining health technology company of this generation" by leveraging its AI-powered health sensing system.