U.K.-based consumer tech company Nothing is setting its sights on the U.S., with ambitions of taking on Apple’s iPhone.
The startup, the hardware venture of Carl Pei — co-founder of Chinese mobile phone maker OnePlus — is in early conversations with American carriers about launching a new smartphone in the U.S., Pei told CNBC, without naming any of the carriers.
In July, Nothing launched Phone (1), a mid-range device with a design, price and specs similar to Apple’s entry-level iPhone SE.
The company, which is backed by iPod creator Tony Fadell and Alphabet’s VC arm GV, has only launched its smartphone in Europe, the Middle East and Asia so far — not the U.S. or Canada.
“The reason why we didn’t launch in the U.S. is because you need a lot of additional technical support, to support all the carriers and their unique customizations that they need to make on top of Android,” Pei explained in an interview with CNBC. “We felt that we weren’t ready before.”
“Now we are in discussions with some carriers in the U.S. to potentially launch a future product there,” said the Chinese-Swedish entrepreneur.
The likes of Apple and Samsung already have established relationships with large U.S. carriers, making it harder for smaller firms to compete.
But a third of the sales of its recently launched Ear (stick) headphones currently come from the U.S., Pei added.
“It’s definitely a market where there’s already a lot of interest for our products. And if we launch our smartphones there, I’m sure we could obtain significant growth,” he said.
The company expects its revenues to jump more than tenfold in 2022 — from about $20 million in 2021 to an estimated $250 million this year, according to figures shared with CNBC exclusively. It has also more than doubled its employees to more than 400. However, the firm is still losing money.
“The goal is to be profitable in 2024,” Pei said. “We are not profitable right now. And this year was made even harder due to the foreign currency exchange. We pay a lot of our COGS [cost of goods sold] in USD but we make money in pounds, in euros, in Indian rupees — so everything devalued against the USD.”
The U.S. dollar has rallied this year; the dollar index — which measures the greenback against a basket of major currencies — is up over 8.5% year-to-date.
Taking on Apple
Pei wants to challenge Apple’s iPhone in the U.S. But it’s a steep hill to climb.
“There’s a challenge with Android where iOS is just becoming more and more dominant. They have very strong lock-in with iMessage, with AirDrop, especially among Gen Z. So that’s a rising concern for me,” he said.
“There might be a time where Apple is like 80% of the overall market and that just does not leave enough space for Android-based manufacturers to keep playing,” he said.
Apple’s active installed base, which takes into account people who bought phones second-hand, surpassed 50% in the U.S. in the second quarter, surpassing Android, according to data from Counterpoint Research.
Apple was not immediately available for comment when contacted by CNBC.
He added that, in a couple of years’ time, Nothing may have to “have a serious think about this problem and how we tackle it.”
“It’s going to create a ceiling to our growth,” Pei said.
David vs. Goliath
Pei said his firm has faced a plethora of challenges in bringing its products to market. One of the major setbacks it faced was when it approached Foxconn, Apple’s largest iPhone supplier, to manufacture its phones.
According to Pei, Foxconn refused to do business with Nothing, citing past failures in the smartphone industry.
“Every startup manufacturer has worked with Foxconn,” Pei said. “But when it was our turn, they said no because every startup that worked with them failed. And every time a startup failed, Foxconn lost money on it, they were not able to recoup their costs.”
Foxconn was not immediately available for comment when contacted by CNBC.
Covid restrictions around the globe also presented a significant hurdle for the company. In India, where Nothing produces its phones, the company was unable to fly out engineers due to travel restrictions, with Pei saying the company had to manage its factory on the ground remotely.
“We really had to hustle to create this,” he said of Nothing’s smartphone.
In Shenzhen, China, where officials have imposed strict lockdowns, Nothing’s engineers had to discuss component designs and mechanics during mandated 45-minute periods when it was acceptable for people to go outside to buy groceries.
Nothing has sold over 1 million products to date globally, with its Ear (1) and Ear (stick) earbuds selling 600,000 units and the Phone (1) reaching 500,000 shipments.
Still, the startup is a tiny player, and it faces a bleak economic outlook where people are being forced to limit their spending drastically.
In Europe, smartphone shipments sank 16% in the third quarter year-over-year, per Counterpoint Research data — although they were up slightly from the previous quarter on the back of the iPhone 14’s strong launch.
Samsung is Europe’s largest smartphone maker with 35% market share, followed by China’s Xiaomi’s 23% and Apple’s 21%.
In this photo illustration, the DeepSeek logo is seen displayed on a smartphone screen and in the background, the flag of the European Union.
Thomas Fuller | Sopa Images | Lightrocket | Getty Images
One of Germany’s data protection watchdogs on Friday said DeepSeek’s app illegally sends user data to China and asked Google and Apple to consider blocking the artificial intelligence service.
Berlin’s data protection commissioner Meike Kamp said in a statement that DeepSeek’s transfer of German user data to China is “unlawful.”
There is not a readily available way to get in touch with DeepSeek. CNBC has reached out to DeepSeek’s privacy team.
Chinese firm DeepSeek made waves this year when it launched an AI model that it claimed was created at a fraction of the cost of competitors, using less advanced Nvidia chips.
The company also has its own global chatbot AI app, which has been downloaded millions of times, garnering scrutiny.
If the German case against DeepSeek progresses, it could lead to a European Union-wide ban for the app, some experts say.
“It is certainly possible that this incident could lead to an EU-wide ban because the rules that apply in Germany are the same elsewhere in the EU and also in the UK,” Matt Holman, specialist AI and data lawyer at Cripps, told CNBC by email. There are a few steps before this would become reality, however.
What is Germany’s issue with DeepSeek?
“DeepSeek has not been able to convincingly demonstrate to my authority that the data of German users is protected in China at a level equivalent to that of the European Union,” Germany’s Kamp said, according to a CNBC translation. “Chinese authorities have extensive access rights to personal data within the sphere of influence of Chinese companies.”
Under the European Union’s General Data Protection Regulation — the bloc’s huge data protection law — companies are prohibited from sending data outside the region unless specific safeguards are in place at the countries of arrival. Those safeguards must meet GDPR requirements in Europe.
In short, the Berlin data protection commissioner is concerned that Chinese authorities could access German user data sent by DeepSeek to China.
What are the next steps?
The Berlin data watchdog on Friday said it had informed Apple and Google of DeepSeek’s alleged violations and expects the U.S. tech giants to carry out a “timely review” about whether to ban the app or not from their respective app stores.
It’s unclear if Google and Apple will comply. CNBC has reached out to both companies for comment.
Cripps’ Holman said that while and EU-wide ban is possible, there needs to be consensus among the bloc’s regulators first that this would be an appropriate step.
If Apple and Google remove DeepSeek from their app stores, this would effectively amount to an EU-wide ban, Holman said.
“The implications for Deepseek could be, unsurprisingly, quite stark. Access to German citizens’ data will be curtailed. In short order this could expand to the remainder of the EU if other national regulators follow suits meaning EU — and potentially UK — markets will be curtailed if Apple and Google disables the app,” Holman said.
This is not DeepSeek’s first run-in with regulators in Europe. Italian data protection authorities in February ordered DeepSeek to block its app in the country. Meanwhile, Irish authorities in January asked DeepSeek for information on its data processing.
Masayoshi Son, chairman and chief executive officer of SoftBank Group Corp., speaks during the company’s annual general meeting in Tokyo, Japan, on Friday, June 27, 2025.
Bloomberg | Bloomberg | Getty Images
SoftBank is “all in” on OpenAI, CEO Masayoshi Son said on Friday, as the Japanese tech giant looks to realize its vision of “artificial superintelligence.”
This year, the Japanese multinational conglomerate has been increasing its investments in OpenAI and participating in joint ventures such as the $500 billion Stargate project.
According to Son, SoftBank is now “all in” on the artificial intelligence company, with total planned investments in the company reaching about 4.8 trillion Japanese yen ($33.2 billion), despite it being unlisted and unprofitable.
“I think that OpenAI will be listed eventually and, in my belief, will become the most valuable company in the world,” Son said. He added, however, that it “takes bravery to invest” in such a company.
As it turns out, Son has long held that conviction. During the shareholders’ meeting, he revealed that before 2019, OpenAI CEO Sam Altman had asked him if SoftBank would invest $10 billion into the company.
“I said, yes, I would … I was serious because I had financial resources thanks to Vision Fund’s performance. But obviously, Sam talked to other potential investors, and eventually, they picked Microsoft,” he said.
Microsoft ultimately inked the deal, which made it the exclusive provider of computing power for OpenAI’s research, products, and programming interfaces for developers. However, Microsoft lost its status as OpenAI’s exclusive cloud provider at the start of this year.
Touching upon the reports, Son suggested that Altman should have chosen SoftBank, not Microsoft, as its initial partner, though he noted that SoftBank was smaller at the time and that Microsoft had its global supply chains, technical talents and brand value to offer.
However, on Friday, Son said that his conviction on OpenAI has only grown stronger and that SoftBank will continue to deepen its relationship with the company, regardless of what happens with Microsoft.
Artificial superintelligence
Part of Son’s belief in OpenAI stems from his desire for SoftBank to be at the center of “artificial superintelligence,” which he has described as AI that is 10,000 times smarter than humans.
Son said on Friday that he wants SoftBank to become the biggest platform provider for this ASI within the next decade, serving as the “organizer of the industry in the artificial superintelligence era.”
He added that SoftBank’s partnership with OpenAI, along with British semiconductor company Arm, which SoftBank acquired in 2016, would be essential to those plans.
Bloomberg News reported last week, citing people familiar with the matter, that Son is also considering establishing a $1 trillion industrial complex in the U.S. that will develop AI.
The SpaceX Starbase industrial complex and rocket launch facility in Boca Chica, Texas, US, on Thursday, April 17, 2025.
Mark Felix | Bloomberg | Getty Images
A SpaceX crane collapse at the company’s Starbase, Texas facility on Tuesday has prompted an investigation by the Occupational Safety and Health Administration, the federal agency told CNBC in an email.
The crane collapse was captured in a livestream by Lab Padre on YouTube, a SpaceX-focused channel. Clips from Lab Padre were widely shared on social media, including on X, which is owned by SpaceX CEO Elon Musk.
It wasn’t immediately clear whether any SpaceX workers were injured as a result of the incident. Musk and other company executives didn’t respond to a request for comment.
A spokesperson for OSHA told CNBC that more details will be available after the investigation is complete.
SpaceX has a history of workplace injuries that exceed industry average, Reuters previously reported. In 2014, one of the company’s employees, Simon LeBlanc, died on the job due to what OSHA concluded was a failure by the company to protect him from a clear hazard.
Earlier this year, the Department of Government Efficiency (DOGE), a Musk-led effort by the Trump administration to slash the size of the federal government, cut OSHA’s resources and shuttered at least 11 of its field offices. Through DOGE, Musk sought to reduce federal agency budgets, personnel and even certain regulations, limiting their ability to investigate and enforce existing laws.
The SpaceX crane collapse followed a string of explosions and other setbacks for the company’s Starship Super Heavy launch vehicle, the largest rocket ever flown, which is key to Musk’s ambition to transport equipment and people to Mars.
Environmental activists in the U.S. and Mexico say those explosions have harmed sensitive habitat, wildlife and marine life. SpaceX said, in posts online, that its activity had not harmed the surrounding area during the most recent explosion on June 18.
Starship was previously expected to play an important part in NASA’s effort to return to the moon. SpaceX had earned more than $20 billion in federal government contracts mostly from the Department of Defense and NASA.
Meanwhile, NASA’s proposed lean budget for the next year has not yet been authorized by Congress and could impact the agency’s business with SpaceX, and shift the focus of its missions.
Musk, who was President Donald Trump’s biggest financial backer, sought to appoint his friend Jared Issacman, a commercial astronaut, to lead NASA under the second Trump administration. Trump withdrew his nomination of Isaacman as the president bickered with Musk in the waning days of the billionaire’s formal involvement with the White House.