Sources: Naveen Rao’s New Ai Hardware Startup Targets $5b Valuation With Backing From A16z 

Naveen Rao, who was formerly nan caput of artificial intelligence astatine Databricks, is successful talks to raise a $1 cardinal astatine a $5 cardinal valuation for a caller startup, called Unconventional, Inc., that’s building a caller type of computer, according to 4 group acquainted pinch discussions. 

Andreessen Horowitz has agreed to lead nan investment, and Lightspeed and Lux Capital are besides participating successful nan deal, 2 of nan sources said, though nary of those VCs firms responded to our petition for comment. Databricks is besides said to beryllium investing successful Rao’s caller company, Bloomberg reported past month. 

Rao has already raised hundreds of millions and plans to statesman building nan startup without waiting for nan afloat $1 cardinal information to close, our sources said. He plans to raise nan remainder of nan superior successful installments, a backing attack commonly referred to arsenic a “tranched” round. 

Rao declined to comment, though he did publically admit nan new startup connected X last week, confirming its name, and describing its hoped-for merchandise arsenic “rethinking nan foundations of a machine to build a caller substrate for intelligence that is arsenic businesslike arsenic biology. Brain Scale Efficiency without nan biologic baggage!”

Databricks acquired Rao’s erstwhile startup MosaicML successful 2023 for $1.3 billion. Founded by Rao successful 2020 pinch a attraction connected training and deploying ample AI models, MosaicML raised $33.7 cardinal from investors including Lux Capital, DCVC, Playground Global, and Samsung Next, according to PitchBook. Prior to MosaicML, Rao co-founded nan instrumentality learning level Nervana Systems, which Intel Corp. acquired successful 2016 for reportedly much than $400 million. 

Rao, who spent complete 2 years arsenic VP of AI astatine Databricks (now weighted astatine $100 billion and generating $4 cardinal successful ARR), near nan institution past period to attraction connected his caller startup, according to his LinkedIn floor plan and earlier reporting by Bloomberg.

Our sources opportunity Rao’s imagination will fundamentally compete pinch Nvidia by designing a caller AI instrumentality that includes some civilization silicon chips and server infrastructure.