Naveen Rao’s AI hardware startup aims for $5B valuation with a16z support.
Sources: Naveen Rao’s new AI hardware startup targets $5B valuation with backing from a16z
Naveen Rao Launches Unconventional, Inc.: A Pioneering Venture in AI Computing
Naveen Rao, the former head of artificial intelligence at Databricks, is aiming to raise $1 billion in funding for his new startup, Unconventional, Inc., which is set to revolutionize computing technology. Sources close to the discussions reveal that the company is valued at $5 billion and intends to create a novel type of computer architecture.
Investment Partners and Funding Strategy
Andreessen Horowitz has shown strong interest by agreeing to lead the investment round, while notable venture capital firms Lightspeed and Lux Capital are also set to participate. Reports indicate that Databricks is planning to back Rao’s new venture as well. Despite requests for comment, representatives from these investment firms have not responded.
Rao has already secured hundreds of millions in funding and is poised to initiate the development of Unconventional, Inc. without waiting for the complete $1 billion funding round to finalize. His strategy involves a “tranched” funding approach, allowing him to raise the necessary capital in incremental stages.
Vision and Product Innovation
While Rao has chosen not to comment extensively on the venture, he did subtly announce the establishment of Unconventional, Inc. on social media last week. He described its mission as fundamentally rethinking computer architecture to create a new substrate for intelligence, which he claims will be as efficient as biological systems. His vision includes achieving “Brain Scale Efficiency without the biological baggage,” suggesting a focus on maximizing computational efficiency.
His commitment to this transformative vision was captured in a tweet:
“Hello world Unconventional, Inc.! I’ve launched a big swing…rethinking the foundations of a computer to build an efficient substrate for intelligence. We CAN do it.” — Naveen Rao (@NaveenGRao), September 25, 2025
Rao’s Entrepreneurial Background
Rao is no stranger to the entrepreneurial landscape. In 2023, Databricks acquired his prior startup, MosaicML, for an impressive $1.3 billion. Founded in 2020, MosaicML focused on the training and deployment of large-scale AI models and successfully raised $33.7 million from prominent investors like Lux Capital and Samsung Next.
Before MosaicML, Rao co-founded Nervana Systems, a machine learning platform that caught the attention of Intel Corporation. In 2016, Intel purchased Nervana for around $400 million, showcasing Rao’s ability to navigate and innovate in the tech sphere.
Leadership at Databricks
For over two years, Rao held the position of Vice President of AI at Databricks, a company that has skyrocketed to a valuation of $100 billion, boasting an annual recurring revenue (ARR) of $4 billion. Rao departed from Databricks last month, focusing fully on the future of Unconventional, Inc. His experience at a leading AI firm offers him a unique perspective on the industry’s competitive landscape.
Competing with Giants in the AI Space
Rao’s vision for Unconventional, Inc. places it in direct competition with industry giants like Nvidia. He aims to design a groundbreaking AI machine combining custom silicon chips with robust server infrastructure. With this innovative engineering, Rao hopes to carve out a significant niche in the AI market.
Conclusion: A New Era in AI Computing
Naveen Rao’s Unconventional, Inc. represents a major step forward in the evolution of computing technology. By securing substantial funding and surrounding himself with experienced partners, Rao is not just reimagining the underlying architecture of computers but also challenging established industry players.
As the tech world eagerly anticipates the developments from this ambitious startup, it’s clear that Naveen Rao’s journey in redefining AI and computing is only just beginning. The potential impact of Unconventional, Inc. could set new standards for efficiency and innovation in the realm of artificial intelligence.
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