Naveen Rao, once the head of AI at Databricks, is gearing up to launch a new company called Unconventional, Inc. He’s looking to raise $1 billion at a valuation of $5 billion. Notable investors like Andreessen Horowitz, Lightspeed, and Lux Capital are expected to be part of this deal, although they haven’t responded to inquiries yet. Databricks is also reportedly investing in Unconventional.
Rao has already secured hundreds of millions in funding and plans to start building Unconventional while he continues to raise the remaining funds. This approach, called a “tranched” round, allows him to gather capital in stages.
Recently, he took to social media to announce Unconventional. He described the company’s mission as “rethinking the foundations of a computer” to create a new type of technology that mimics the efficiency of biological systems.
Rao’s journey in tech has been impressive. He previously founded MosaicML, a startup focused on training and deploying large AI models, which Databricks acquired for $1.3 billion in 2023. Before that, he co-founded Nervana Systems, sold to Intel for more than $400 million.
Experts see this new venture as a potential challenger to Nvidia. Rao aims to develop unique AI machines that integrate custom silicon chips with server infrastructure, paving the way for more advanced AI applications.
As AI continues to be crucial in various industries—from healthcare to finance—the demand for innovative technology like what Rao envisions will likely grow. According to recent statistics, the AI industry is expected to reach a market value of $1.5 trillion by 2029. The shift towards more efficient AI can help drive this growth further.
The tech community is buzzing about this project, with many curious to see how this “new substrate for intelligence” will unfold. Rao’s ambition and previous successes add a layer of excitement as he ventures into this bold new territory.
For more insights into emerging tech trends, check out sources like McKinsey’s AI reports and Gartner’s tech predictions.
Source link
a16z,Databricks,Exclusive,Lightspeed Venture Capital,lux capital
