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The Chip That Could Unlock AGI.

Naveen Rao is cofounder and CEO of Unconventional AI, an AI chip startup building analog computing systems designed specifically for intelligence. Previously, Naveen led AI at Databricks and founded two successful companies: Mosaic (cloud computing) and Nervana (AI accelerators, acquired by Intel). In this episode, a16z’s Matt Bornstein sits down with Naveen at NeurIPS to discuss why 80 years of digital computing may be the wrong substrate for AI, how the brain runs on 20 watts while data centers consume 4% of the US energy grid, the physics of causality and what it might mean for AGI, and why now is the moment to take this unconventional bet. Timecodes: 00:00 - Trailer 00:56 - Exploring hardware for running AI workloads 02:02 - Why Naveen built lots of software in a "hardware company" 03:22 - Why start a new chip company? 05:13 - How computing systems went digital 09:26 - Why intelligence is a good fit for analog computer systems 12:30 - What tradeoffs Naveen faced in pursuing his own path 15:23 - The Data modalities Unconventional chips will be best for 16:54 - Does this get us closer to AGI? 21:00 - Where Naveen gets his excitement and motivation 22:37 - What makes Naveen confident that Unconventional will work 24:43 - Unconventional's hiring priorities 26:27 - Career advice for young people 28:19 - What Naveen has done best in his companies Resources: Follow Naveen on X: https://twitter.com/NaveenGRao Follow Matt on X: https://twitter.com/BornsteinMatt Stay Updated: Follow a16z on X: https://twitter.com/a16z Follow a16z on LinkedIn: https://www.linkedin.com/company/a16z Follow the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX Follow the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711 Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details, please see http://a16z.com/disclosures.

Matt Bornsteinhost
Dec 8, 202530mWatch on YouTube ↗

CHAPTERS

  1. Trailer: AI as humanity’s next evolution and the “new chip” premise

    The episode opens with a bold framing: AI as a transformative step for humanity, and Naveen Rao as a builder who’s repeatedly been early to major waves. The trailer tees up the central bet—rethinking compute hardware to make AI more efficient and more ubiquitous.

  2. Why hardware matters for AI workloads: Rao’s “shrink it, speed it up” mindset

    Rao explains how his early career trained him to translate algorithms into efficient, real-time systems by building specialized hardware. That background shapes his view that the right hardware substrate can unlock entirely new applications and form factors for AI.

  3. Full-stack before it was trendy: why he built software inside “hardware companies”

    Rao argues the boundary between software and hardware is artificial—just a line drawn around what’s configurable. He describes an older definition of “full stack” spanning silicon, architecture, low-level software, and applications, and why that breadth enables better system design decisions.

  4. Why start Unconventional now: first principles, brains, and the energy wall

    Rao says Unconventional isn’t “a chip company” first—it’s an exploration of how learning works in physical systems. He ties the motivation to biology’s efficiency and the growing reality that global compute is becoming fundamentally energy-constrained.

  5. How computing went digital: scalability beat analog’s efficiency

    The conversation contrasts digital and analog: digital represents numbers with bits and trades precision for generality and scalable manufacturing. Analog computing was early and efficient, but variability and scaling challenges pushed the industry toward robust digital abstractions.

  6. Why intelligence may fit analog/mixed-signal: stochastic brains vs deterministic substrates

    Rao argues neural networks are inherently stochastic and distributed, yet we run them on highly deterministic, precision-oriented hardware built for arithmetic. He suggests there may be an “isomorphism” in circuits that better matches intelligence, using physics directly rather than layered abstractions.

  7. The real constraint: AI at grid scale and the infrastructure bottleneck

    Rao and Bornstein connect AI’s growth to data-center energy use, grid strain, and the difficulty of building generation and transmission fast enough. This creates urgency for compute paradigms that dramatically improve efficiency rather than assuming unlimited power.

  8. Tradeoffs and where analog wins: dynamical systems, time, and “intelligence substrates”

    Rao rejects a binary digital-vs-analog framing and instead argues for workload fit. He highlights dynamical systems—problems with time evolution—as especially amenable to physical computation, while conventional numeric computing remains important elsewhere.

  9. Best-fit modalities and models: transformers today, dynamics-forward models tomorrow

    Unconventional plans to start from what works—transformers and diffusion—while exploring models that explicitly encode dynamics, like diffusion/flow and energy-based approaches. Rao argues transformers exploit GPU-friendly structure but may be parameter-inefficient relative to alternative formulations.

  10. Does this move toward AGI: causality, time evolution, and richer primitives

    Rao cautiously argues that systems grounded in dynamics, time, and causality could be a better basis for more general intelligence than static function approximators. He notes today’s models are powerful yet still make “stupid errors,” suggesting gaps in causal understanding.

  11. Ecosystem strategy: partners, competitors, and manufacturing-scale reality

    Rao outlines a phased ambition: prove a new intelligence paradigm within five years, then ensure it scales in manufacturing to matter at global energy scale. He describes TSMC as a likely partner, and leaves open whether NVIDIA/Google become collaborators or competitors.

  12. Motivation, confidence, and the “practical research lab” culture

    Rao describes the unique thrill of hardware bring-up and his optimism about AI’s societal upside, positioning himself as strongly non-doomer. He grounds confidence in biology as existence proof plus decades of academic work, and emphasizes an open-ended early culture focused on existence proofs before optimization.

  13. Hiring, career advice, and leadership style: agency, breadth, and big hard problems

    Rao details the interdisciplinary team needed—model theorists, systems architects, mixed-signal circuit designers—and the risks of building one of the largest analog chips attempted. He advises young engineers to start in startups for breadth, and explains his leadership approach: attract people to hard problems and maximize agency across the org.

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