Unconventional AI Raises $475M

Unconventional AI Raises $475M

10 December 2025

Unconventional AI, led by former Databricks AI head Naveen Rao, has secured $475 million in seed funding at a $4.5 billion valuation. The round was co-led by Andreessen Horowitz and Lightspeed Venture Partners, with participation from Lux Capital, DCVC, and Jeff Bezos. Rao himself invested $10 million. The company aims to create new AI hardware and software systems inspired by biological intelligence.

Unconventional AI is tackling the looming energy bottleneck in AI by building chips inspired by nature. The startup is exploring how biological principles and analogue computing can translate into processors that harness the inherent physics of semiconductors. This approach could lead to machine learning accelerators with greater efficiency. The company's research will explore different approaches to improving the efficiency of machine learning accelerators.

Unconventional AI's goal is to bridge the gap between probabilistic AI models and non-probabilistic chips. They are designing new chips specifically for probabilistic workloads like AI. These chips will use analogue and mixed signal designs to store exact probability distributions in the underlying physical substrate. This could allow them to operate at significantly lower power consumption than digital computers.

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Published on 10 December 2025
aihardwarefundingenergychips
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