Naveen Rao is set to launch a new startup to tackle the high costs of AI computing. Known for founding MosaicML, later acquired by Databricks, Rao\u2019s new venture will compete with giants like NVIDIA and Intel, focusing on affordable and efficient AI infrastructure.\n <\/p>\n
New Delhi: <\/p>\n
The AI industry witnessed a major shake-up when the news surfaced about Naveen Rao, the Indian-origin AI chief at Databricks, who announced his departure. He took the major step to start a new startup. Rao played a key role in scaling up Databricks\u2019 AI business, and he is now focusing on building solutions that will reduce the skyrocketing costs for artificial intelligence (AI) computation.\u00a0<\/p>\n
Who is Naveen Rao?<\/p>\n
\n\tRao is best known as the founder of MosaicML, an AI infrastructure firm acquired by Databricks in 2023 for USD 1.3 billion.\u00a0
\n\tHe is not new to ambitious projects, and at MosaicML, Rao created platforms that made AI more affordable and efficient.
\n\tWith his new venture, he aims to bring similar breakthroughs in the AI computing space, where training large models has become increasingly expensive.
<\/p>\n
Continued partnership with Databricks<\/p>\n
\n\tEven though he is stepping away from Databricks\u2019 day-to-day operations, he will continue to serve as an advisor at Databricks.
\n\tRao\u2019s new startup has already received financial support from Databricks, which shows that the company values his innovative vision.
<\/p>\n
Databricks\u2019 strong market momentum<\/p>\n
Rao\u2019s exit comes at a time when Databricks is experiencing rapid growth. The company recently raised USD 10 billion in a Series J funding round, giving it a valuation of USD 62 billion. Its revenues are closing in on a USD 3 billion annual run rate, and it could achieve free cash flow positivity by the end of 2024.<\/p>\n
Databricks\u2019 success has been powered by its Data Intelligence Platform, which integrates generative AI accelerators to help enterprises deploy AI systems at scale.<\/p>\n
Can Databricks sustain Innovation?<\/p>\n
The big question lies for the investors and industry lookers- whether Databricks can maintain its innovative pace without one of its top leaders?<\/p>\n
\nRetaining technical talent and continuing to develop next-generation AI tools will be crucial for its long-term competitiveness.<\/p>\n
Rao\u2019s startup vs industry giants<\/p>\n
The AI computing space is dominated by NVIDIA, AMD, and Intel, with NVIDIA alone holding about 92 per cent of the data centre GPU market. However, the high energy and hardware costs of training models have opened doors for smaller, more agile companies.<\/p>\n
Rao\u2019s startup is expected to focus on cost-optimised AI solutions across hardware and software.<\/p>\n
This could place it in competition with major cloud players like AWS, Google, and Microsoft, who are building their own chips, while also rivalling niche firms like Lambda and CoreWeave, which are gaining ground with flexible, tailored AI infrastructure.<\/p>\n
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