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Naveen Rao has started another AI company which aims to make running AI systems and model less straining on the energy.
The entrepreneur’s new startup has big plans to keep AI running efficiently. (Photo: LinkedIn)
Unconventional AI, the new startup by entrepreneur Naveen Rao has raised $475 million which values the company at $4.5 billion thanks to funding led by some well known venture capitalists and companies. Rao has been instrumental in the AI evolution of the industry and the former AI chief at Databricks is now looking to set up his own venture with a $1 billion funding in his sights.
The new AI startup from Rao is focused on building computers that can run AI applications and models in an efficient manner, which he claims will be “as efficient as biology.”
The funding round for Unconventional AI was led by Andreessen Horowitz, Lightspeed Ventures and the likes of Lux Capital and DCVC also were participating in the round. Rao has reportedly been quoted eyeing the $1 billion funding target and having $475 million in the first go is a positive start.
Who Is Naveen Rao And What Unconventional AI Does
Unconventional AI is trying to live up to its name and Rao is looking to build computing solutions that operate AI without taking a toll on the energy resources. The aim to make these systems can be ambitious but he seems intent on turning the plan into reality.
So who is Naveen Rao and what credentials does he bring with his new AI startup? He has been a core part of the AI industry for the last decade and more. Databricks made him the head of its AI division after acquiring his previous startup, MosaicML back in 2023 for $1.3 billion. Before that, Rao was a co-founder at another machine learning startup called Nervana Systems that Intel picked up in 2016 for more than $400 million.
It is clear that Rao has the know-how around AI systems and how they run. And he seems to have decided to now design systems that take less energy to run powerful AI models and many companies could be eyeing this solution for their own future resources.
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December 10, 2025, 13:40 IST
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