A new AI hardware startup, Unconventional, Inc., led by Naveen Rao, former head of artificial intelligence at Databricks, is reportedly in talks to raise $1 billion at a $5 billion valuation to develop a new type of computer, according to four people familiar with the matter.
Andreessen Horowitz has agreed to lead the funding round, with participation from Lightspeed and Lux Capital, two of the sources said. Additionally, Naveen Rao, former head of artificial intelligence at Databricks, is leading the venture, and Databricks is expected to invest in it.
According to sources, Rao has already secured hundreds of millions in funding and intends to start building the startup without waiting for the full $1 billion round to close. He plans to raise the remaining capital in stages, a funding strategy commonly known as a “tranched” round.
Rao declined to comment, although he publicly acknowledged the new venture on X last week, confirming its name and describing its envisioned product 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!”
Databricks acquired Rao’s previous startup, MosaicML, in 2023 for $1.3 billion. Founded by Rao in 2020 to focus on training and deploying large AI models, MosaicML raised $33.7 million from investors including Lux Capital, DCVC, Playground Global, and Samsung Next, according to PitchBook. Before MosaicML, Rao co-founded the machine learning platform Nervana Systems, which Intel acquired in 2016 for reportedly over $400 million.
Rao, who served as VP of AI at Databricks for more than two years—during which the company grew to a $100 billion valuation and $4 billion in ARR—left last month to focus on his new AI hardware startup, as reflected on his LinkedIn profile.
By reimagining the foundations of computing and leveraging innovative funding strategies, the startup aims to push the boundaries of AI and hardware efficiency.
