Naveen Rao, former head of AI at Databricks, is currently in negotiations to raise $1 billion for his new venture, Unconventional, Inc. The startup, which aims to revolutionize computer architecture, is eyeing a massive $5 billion valuation, according to four individuals familiar with the ongoing discussions.
Strategic Backing from Industry Giants
Andreessen Horowitz (a16z) has reportedly agreed to lead the investment round. The deal also includes participation from venture capital firms Lightspeed and Lux Capital. Furthermore, Databricks is expected to join the funding round, a move that aligns with recent reports regarding Rao’s transition out of the company.
While the full $1 billion target remains the goal, insiders indicate that Rao plans to initiate operations immediately. He intends to utilize a “tranched” funding approach, securing the capital in installments rather than waiting for the entire round to close.
Rethinking Computer Architecture
Rao officially confirmed the launch of Unconventional, Inc. via a public statement on X last week. He described the company’s mission as a fundamental shift in computing, aiming to create a “substrate for intelligence that is as efficient as biology.”
Hello world Unconventional, Inc.
I’ve gotten a new company off the ground. It’s a big swing…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!
We CAN do it.…
— Naveen Rao (@NaveenGRao) September 25, 2025
The company’s vision sets it on a direct collision course with Nvidia. Sources suggest that Unconventional, Inc. is developing a novel machine that integrates custom silicon chips with specialized server infrastructure to optimize AI workloads.
A Proven Track Record in AI
Rao’s reputation in the tech industry is bolstered by his history of successful exits. Before his tenure at Databricks, he founded MosaicML, which was acquired by Databricks in 2023 for $1.3 billion. Prior to that, he co-founded Nervana Systems, a machine learning platform that Intel Corp. acquired in 2016 for more than $400 million.
During his two-year stint as VP of AI at Databricks, Rao helped oversee the company’s growth to a $100 billion valuation. He officially stepped down last month to dedicate his efforts to the development of Unconventional, Inc. and its mission to redefine the hardware foundations of artificial intelligence.
Databricks is also said to be investing in Rao’s new company, Bloomberg reported last month.