Databricks has invested in the AI hardware startup of Naveen Rao, enhancing its enterprise AI and data analytics leadership.

Databricks CEO Ali Ghodsi said the company was backing a new AI hardware startup by its former AI vice president, Naveen Rao. Although the specifics of the funding and product plan of the startup are not disclosed, the project is projected to provide energy-efficient computing that will be used in artificial intelligence.

Rao, a former founder of Nervana and MosaicML, acquired later, stated that the project aims at redefining the principles of compute to reach the level of brain efficiency. Ghodsi applauded the entrepreneurial history of Rao and affirmed that he will go on advising Databricks with the new company.

Databricks announces this news while consolidating its enterprise AI and data analytics capabilities. The company recently managed to raise a $10 billion Series J round, valuing the company at 62 billion. It is on the verge of becoming a $3 billion run rate with the annual revenue turnover, and it is projected to have a positive cash flow toward the end of 2024.

The decision to use the Databricks Data Intelligence Platform, which combines generative AI accelerators and data analytics, is driving expansion in businesses. This puts Databricks in the middle of the changing enterprise AI stack, analysts observe.

The experts in the industry believe that this characteristic of energy-efficient AI hardware, together with robust data analytics platforms, can redefine enterprise computing. Rao asserts that the venture demonstrates Databricks' commitment to fostering innovation within the AI ecosystem