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Unconventional AI raises $475 million in seed funding

Introducing Unconventional AI
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Unconventional AI has raised a total of $475 million in seed funding, giving the AI startup a valuation of $4.5 billion, as per an official announcement on December 8, 2025. 

The update comes close to 3 months after CEO Naveen Rao opted to leave Databricks, where he held the role of VP of artificial intelligence for more than 2 years. A company spokesman said he would be transitioning to occupy an advisory role at Databricks.

“We’re proud to announce Unconventional AI a bit more publicly! We’re in unprecedented times…AI has exponential demand but is limited by (linear) energy build-outs,” said Rao in a LinkedIn post. 

In an interview with a16z, Rao said that the new startup would definitely partner up with TSMC, while he expressed doubt as to whether NVIDIA would be a competitor in the space. 

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