Indian-hero AI chief who left $ 100 billion databricics to manufacture next-gene computer meets Naveen Rao
Naveen Rao, Databricks’ AI prominent, AI steps down to start a new venture focused on reducing computing costs. Their exit comes when Databrix protects the money on a large scale, questioning maintaining the speed of innovation.
The leadership shake-up in Databricics has sent waves through the AI sector, which attracts the attention of investors that it is eager to understand how talent, innovation and financial muscles collide in this fast-running market. Spotlight is firm on the company’s departure AI chief Naveen Rao, who has stepped up to launch a new computer startup to deal with the rising costs of artificial intelligence computing.
Who is Naveen Rao?
Rao is not just another technology executive that “tries to do something new”. He is a proven builder. Known as the founder of Mosaicml, an AI Infrastructure Company acquired by Databrix to $ 1.3 billion in 2023, Rao has a track record of scaling solutions that make AI more efficient and inexpensive. Now, he is betting on a new venture designed to reduce the crushed expenses of AI computation.
Importantly, databricks are not cutting relationships. While Rao turns into an advisory role, his new company has already received financial support from its former employer, although the check size is still wrapped. The message is clear: Databricics sees the value in supporting outside innovation, even when it comes from one of its own alumni.
Rao’s exit comes in a moment when Databricics is firing on all cylinders. The company recently shut down the $ 10 billion series J funding round, with its evaluation on a $ 62 billion head-turning. Revenue is running galloping towards an annual run rate of $ 3 billion, with the forecast that it can become free cash flow positive by the end of 2024.
The data of databricics in this success is the intelligence platform, which is now with a generic AI accelerator to help deploy the AI agent system more originally. For investors, it is not just promotional: it’s a business model that is scaling at a speed, while the enterprise is deeply embedded in the AI stack.
But Rao’s departure increases eyebrows. Can Databricics maintain the speed of innovation without one of their most visionary leaders? The company’s future speed may depend on its ability to maintain top technical talent and give the next generation tools beating rivals.
Rao’s startup versus veteran
The new enterprise is entering a terrible competitive place. The AI computing market is dominated by Nvidia, AMD and Intel’s choice, in which Nvidia has left 92 percent of the data center GPU market for its blackwell architecture. But the cracks are showing: The sheer energy and hardware cost of large AI model training has created opportunities for lean, more specific players.
This is the inauguration on Rao. By focusing on cost-friendly solutions, whether hardware, software, or both-their startups can exclude a niche. Major cloud players like AWS, Google and Microsoft are busy designing their own custom chips, but their emphasis remains on a large scale infrastructure. It leaves space for an agile operator to innovate in areas such as edge computing or hybrid sinsenization models. Meanwhile, young firms like Lambda and Korvive are already proving that the challenger brands can flourish by offering more sequential, flexible AI infrastructure.