Sources: Naveen Rao’s New AI Hardware Startup Targets $5B Valuation with Backing from a16z
Naveen Rao, the former head of AI at Databricks, is making waves with his new venture. Sources: Naveen Rao’s new AI hardware startup targets $5B valuation with backing from a16z, as he explores raising $1 billion for Unconventional, Inc.—a company aiming to redefine computing itself.
Image Credits:Naveen Rao
Andreessen Horowitz is set to lead the investment, joined by Lightspeed and Lux Capital, according to sources familiar with the deal. Databricks is also reportedly investing, signaling strong confidence in Rao’s vision.
Unconventional, Inc.: Building a New Substrate for Intelligence
Rao’s vision goes beyond traditional computing. On X, he described the startup’s mission as:
"Rethinking the foundations of a computer to build a new substrate for intelligence that is as efficient as biology. Brain Scale Efficiency without the biological baggage!"
Rather than waiting for the full $1 billion round to close, Rao plans to raise the capital in installments—a strategy known as a “tranched” round—allowing Unconventional, Inc. to begin building immediately.
Rao’s Track Record: From Nervana to MosaicML
Rao isn’t new to AI and hardware innovation. Before Unconventional, Inc.:
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He co-founded Nervana Systems, acquired by Intel for over $400 million in 2016.
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In 2020, he founded MosaicML, a startup focused on training large AI models, raising $33.7 million from top investors like Lux Capital and Samsung Next.
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Databricks acquired MosaicML in 2023 for $1.3 billion, cementing Rao’s reputation as an AI pioneer.
This history of successful exits shows why venture capital firms are eager to back Rao’s latest ambitious project.
Why This AI Hardware Startup Matters
Unconventional, Inc. isn’t just another AI startup. It’s positioning itself at the intersection of AI, hardware innovation, and computational efficiency. Rao aims to achieve “brain-scale efficiency” without biological limitations—potentially transforming how AI operates on a hardware level.
With a $5 billion valuation target and top-tier VC backing, this startup could be a key player in the next generation of AI hardware.
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