Silicon Valley Invests $100M in Subscription-Based AI-Driven Mattress

Eight Sleep, a startup offering $3,000 AI-embedded mattresses with a subscription model, recently attracted $100 million in Series D funding to enhance a unique concept in the consumer discretionary field.

The investment round, led by Founders Fund, Y Combinator, Valor Equity Partners, and HSG (formerly Sequoia China), also included contributions from F1 driver Charles Leclerc and McLaren Racing CEO Zak Brown.

As a result, the company’s valuation is approximately $500 million, with reported Pod sales exceeding $500 million since inception.

The “Pod” system utilizes water-filled tubes in the mattress cover to adjust temperature from 55°F to 110°F (13-43 °C).

Integrated sensors monitor heart rate, breathing, and variability, allowing an AI named Autopilot to dynamically adjust the environment.

Starting prices are $2,500 for the mattress topper, rising above $4,000 for the complete system. Additionally, users face a $17–$25 monthly fee for “advanced features”—because even mattresses now come with subscription plans.

The brand enjoys a celebrity following, including Elon Musk and Mark Zuckerberg. Scarlett Johansson endorses it, along with biohacker Bryan Johnson, who invests $2M yearly on anti-aging.

“This funding allows us to enhance AI-driven sleep optimization, explore medical applications for menopausal sleep and sleep apnea, and introduce our technology to a wider audience,” said CEO Matteo Franceschetti in the announcement. The former lawyer, who became a sleep enthusiast, established the company in 2014 after grappling with his own sleep difficulties.

However, not all reviews have been favorable. Users on social media have recounted experiences with glitches that render the system entirely inoperative, leaving them with a costly, unusable bed. Others have highlighted water leakage and connectivity issues.

The AI has been described as a “black box” by users, who criticize the lack of clear data.

Eight Sleep’s latest funding will aid in the creation of a “Sleep Agent,” an AI designed to conduct thousands of nightly simulations to optimize a user’s sleep. The firm is also pursuing FDA clearance for medical uses of its technology, including relief for menopausal hot flashes and sleep apnea.

The company claims its AI has analyzed over 1 billion hours of sleep data. With an infusion of $100 million, Eight Sleep’s strategy hinges on the synergy between its hardware and software to maintain a significant presence, despite the costs.