Rao's AI Hardware Venture

Naveen Rao, formerly Databricks' AI chief, is launching a new AI hardware startup aimed at rivalling Nvidia. The company is targeting a $5 billion valuation and is backed by Andreessen Horowitz (a16z). Rao's previous ventures include Nervana, acquired by Intel, and MosaicML, acquired by Databricks.

The new project focuses on energy-efficient computing for AI, rethinking the foundations of compute to build a more power-efficient machine. Databricks CEO Ali Ghodsi has announced the company's investment in Rao's startup, signalling confidence in his vision and potentially securing future collaboration.

Rao's move comes as Databricks is valued at $100 billion following a recent funding round. His departure raises questions about the sustainability of Databricks' AI roadmap, but the company is supporting his new venture, which could address the escalating energy demands of training large AI models.