Unconventional AI Raises $475M in a Seed Round at a $4.5B Valuation

Unconventional AI, founded in 2025 by Naveen Rao, Milan Lee, Sarah Gashoor, and Michael Karpen, has secured $475 million in a Seed round at a $4.5 billion valuation. The round was led by Andreessen Horowitz and Lightspeed Ventures, with participation from Lux Capital and DCVC, marking the first installment toward a $1 billion target, Rao told Bloomberg.

The company aims to build a new energy-efficient AI computer, leveraging neuromorphic computing and a reverse-engineering approach inspired by the brain’s internal mechanisms. Rao previously wrote on X that his ambition is to create a computer that is “as efficient as biology.” Unconventional AI stated that it will not release any products for the next two years, but plans to reveal more details in the coming months.

Rao has a strong track record in AI startups. Databricks acquired his previous company, MosaicML, in 2023 for $1.3 billion, and before that, he co-founded Nervana Systems, which was acquired by Intel Corp. in 2016 for more than $400 million.