Naveen Rao, formerly head of artificial intelligence at Databricks, is reportedly in discussions to raise $1 billion for his new startup, Unconventional, Inc., targeting a valuation of $5 billion. The venture aims to develop a novel type of computer, according to four individuals familiar with the ongoing discussions.
Andreessen Horowitz has agreed to lead the investment round, with Lightspeed and Lux Capital also participating in the deal, two of the sources stated. Databricks is also reported to be investing in Rao’s new company, as Bloomberg reported last month. Representatives for Andreessen Horowitz, Lightspeed, and Lux Capital did not respond to requests for comment.
Rao has already secured hundreds of millions of dollars and plans to commence operations without waiting for the full $1 billion round to close. The remaining capital is expected to be raised in installments, a funding strategy often referred to as a "tranched" round. Rao publicly acknowledged the new startup on X last week, confirming its name and describing its product vision 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!" Sources familiar with the company's vision indicate that Unconventional, Inc. intends to compete with Nvidia by designing a novel AI machine that integrates custom silicon chips with server infrastructure.
Rao, who served over two years as VP of AI at Databricks, departed the company last month to focus on his new venture, according to his LinkedIn profile and prior reporting by Bloomberg. Before joining Databricks, Rao founded MosaicML in 2020, which focused on training and deploying large AI models. Databricks acquired MosaicML in 2023 for $1.3 billion. Prior to MosaicML, Rao co-founded Nervana Systems, a machine learning platform acquired by Intel Corp. in 2016 for reportedly over $400 million.
