Databricks Alum Advances AI Computers While Nvidia Invests Billions

Naveen Rao, formerly a key figure at Databricks AI, has successfully closed a substantial $475 million seed funding round for his new venture, Unconventional AI. This significant investment, led by Andreessen Horowitz and Lightspeed, values the company at $4.5 billion. Unconventional AI aims to develop energy-efficient AI computers, striving for a biological level of efficiency to address the high power demands of artificial intelligence. Rao brings a strong track record, having previously overseen the $1.3 billion sale of MosaicML and the $400 million-plus exit of Nervana. The AI hardware sector sees further activity as Nvidia Corp. and SoftBank Group Corp. are reportedly in advanced discussions to invest approximately $14 billion into Skydio, an AI startup specializing in drones and AI software. Nvidia alone plans to contribute $10 billion, potentially valuing Skydio at over $10 billion. Meanwhile, Coreweave CEO Michael Intrator defended his company's "new business model" for cloud computing, which leverages valuable Nvidia GPUs to finance operations. On the flip side, Wall Street analysts are advising investors to sell Palantir Technologies and Intel stocks, predicting significant drops despite their current strong performance in the AI space. Palantir, valued at 160 times sales, is considered the most expensive in the S&P 500, while Intel, despite securing Microsoft as a major foundry customer, faces market share challenges. Adobe Inc. is under investor scrutiny as its upcoming earnings report is expected to reveal the revenue impact of its extensive AI strategy. The company has integrated generative AI into its Creative Cloud and Experience Cloud products, including new features for Photoshop, Express, and Acrobat for ChatGPT. Similarly, Microsoft announced price increases for Microsoft 365 starting July 1, 2026, for commercial and government customers, attributing these changes to over 1,100 new features, security updates, and built-in AI capabilities like Copilot. Diginex Limited also reported strong sales growth, reaching US$2.05 million for the first half of 2025, driven by its expansion of AI-driven ESG and compliance technology, including the acquisition of Matter DK ApS and new AI-powered disclosure tools. In the digital assets sector, Surf, an AI platform for crypto analysis, secured $15 million in funding led by Pantera Capital, with plans to expand its crypto-native AI models and enterprise tools. The platform, launched in July, has already generated over one million research reports. Meanwhile, Apple is pursuing a cautious, privacy-focused AI strategy, which, while avoiding huge costs, risks it falling behind competitors like Google's Gemini 3. Despite this, Apple anticipates strong revenue growth and expects "Apple Intelligence" to boost iPhone sales. Nvidia's market position also remains strong, with President Trump approving AI chip sales to China, a move analysts see as positive medium-term, further cementing Nvidia's lead with its full-stack approach and CUDA software platform.

Key Takeaways

• Unconventional AI, led by former Databricks AI head Naveen Rao, secured $475 million in seed funding, valuing the company at $4.5 billion, to build energy-efficient AI computers.
• Nvidia and SoftBank are in advanced talks to invest $14 billion in AI startup Skydio, which makes drones and AI software, potentially valuing Skydio at over $10 billion.
• Adobe's upcoming earnings report will be closely watched by investors for evidence that its generative AI integrations into Creative Cloud and Experience Cloud are driving revenue growth.
• Microsoft will increase Microsoft 365 prices for commercial and government customers starting July 1, 2026, citing over 1,100 new features, security updates, and built-in AI capabilities like Copilot.
• Wall Street analysts recommend selling Palantir Technologies and Intel stocks, predicting significant drops despite Palantir's 140% stock increase and Intel gaining Microsoft as a major foundry customer.
• Diginex Limited reported strong H1 2025 sales of US$2.05 million, driven by its expansion of AI-driven ESG and compliance technology, including the acquisition of Matter DK ApS.
• Surf, an AI platform for digital-asset analysis, raised $15 million to expand its crypto-native AI models and enterprise tools, having already generated over one million research reports.
• Apple's cautious, privacy-focused AI strategy risks it falling behind cloud-centric competitors like Google, though it expects "Apple Intelligence" to boost iPhone sales.
• President Trump approved AI chip sales to China, a move seen as positive medium-term for Nvidia, which maintains a strong lead with its full-stack approach and CUDA software platform.
• Coreweave CEO Michael Intrator defended the company's "new business model" for cloud computing, which uses valuable Nvidia GPUs to finance operations.

Unconventional AI confirms huge $475 million funding

Unconventional AI officially announced it secured a massive $475 million seed funding round. This significant investment will help the company advance its artificial intelligence initiatives. The funding highlights strong investor confidence in Unconventional AI's future plans and technology development.

Naveen Rao's Unconventional AI raises $475 million

Unconventional AI, led by former Databricks AI head Naveen Rao, closed a $475 million seed round, valuing the company at $4.5 billion. Andreessen Horowitz and Lightspeed led this major investment. The startup aims to build energy-efficient AI computers "as efficient as biology" to tackle AI's high power demands. Rao has a proven track record, including the $1.3 billion sale of MosaicML and the $400 million plus exit of Nervana.

Unconventional AI secures $475 million for efficient AI hardware

Unconventional AI confirmed a groundbreaking $475 million seed funding round, achieving a $4.5 billion valuation. Venture capital firms Andreessen Horowitz and Lightspeed Ventures led the investment. Founder Naveen Rao plans to create AI hardware "as efficient as biology" to reduce AI's massive energy consumption. This funding will help develop innovative hardware designs to make advanced AI more sustainable and accessible.

Adobe earnings to reveal AI strategy's revenue impact

Adobe Inc. investors eagerly await Thursday's earnings report for proof that its AI strategy is driving revenue growth. Analysts predict $5.17 billion in revenue and $4.39 earnings per share. Adobe has heavily invested in integrating generative AI into its Creative Cloud and Experience Cloud products. The company recently launched Photoshop, Express, and Acrobat for ChatGPT. Investors will scrutinize guidance and management's comments on AI feature adoption and monetization.

Adobe faces investor scrutiny over AI driven growth

Adobe Inc. will report quarterly earnings on Thursday, with investors seeking clear evidence of AI's impact on growth. The company has invested heavily in AI, integrating it into Photoshop, Express, and Acrobat, and recently launched features for ChatGPT. The market wants to see if these AI advancements significantly boost revenue and user engagement. Analysts will closely watch Adobe's guidance for future quarters to confirm its AI strategy drives profitability.

Coreweave CEO defends company's AI business model

Coreweave CEO Michael Intrator defended his company's performance and "circular deals" at Fortune's AI Brainstorm summit. He stated Coreweave is creating a "new business model" for cloud computing, using its valuable Nvidia GPUs to finance operations. The AI cloud infrastructure provider went public in March, and its stock price has seen ups and downs, currently around $90 after debuting at $40. Intrator believes critics are "myopic" and that disrupting a static environment takes time.

Analysts warn to sell Palantir and Intel AI stocks

Wall Street analysts are advising investors to sell Palantir Technologies and Intel stocks, predicting significant drops. Palantir's stock, up 140% this year, could fall 72% to $50, according to Rishi Jaluria of RBC Capital. Intel's stock, up 101%, might drop 50% to $20, say Matt Bryson of Wedbush and Amanda Tan of DBS Bank. Palantir is highly valued at 160 times sales, making it the most expensive in the S&P 500 despite its strong AI platform. Intel, while gaining a major foundry customer in Microsoft, faces market share loss and high historical valuation.

Diginex sales surge with AI driven ESG expansion

Diginex Limited reported strong sales growth for the first half of 2025, reaching US$2.05 million, up from US$0.52 million last year. Despite this, the company's net loss widened to US$5.81 million. Diginex expanded its AI-driven ESG and compliance technology platform by acquiring Matter DK ApS. It also launched new AI-powered disclosure tools, partly supported by the Hong Kong Monetary Authority. This expansion of AI-driven tools and data capabilities is changing Diginex's investment story.

Nvidia and SoftBank plan $14 billion Skydio AI investment

Nvidia Corp. and SoftBank Group Corp. are in advanced talks to invest about $14 billion in Skydio, an AI startup. This deal would value the Redwood City, California based company at over $10 billion. Skydio makes drones and AI software used in various industries like agriculture and public safety. Nvidia plans to invest $10 billion, and SoftBank is considering a $4 billion investment. The funding will help Skydio accelerate its growth and expand its product offerings.

Apple's cautious AI strategy risks smartphone market share

Apple's AI strategy is cautious and focuses on privacy, unlike competitors who are aggressively investing in cloud-centric AI. While this approach avoids huge costs, it risks Apple falling behind rivals like Google, which is advancing with models like Gemini 3. Apple expects strong revenue growth of 10-12% and 47-48% gross margins, with "Apple Intelligence" boosting iPhone sales. However, its premium stock valuation may face pressure if it is seen as losing the AI race. If Apple's AI offerings seem less advanced, users might switch to other platforms, threatening its ecosystem dominance.

Trump allows AI chip sales to China impacting Nvidia

President Donald Trump recently approved the sale of AI chips to China, sparking debate about benefits versus national security risks. This policy change could impact Nvidia, a major AI chipmaker. Analysts at BNP Paribas see this as positive medium term, but note uncertainties in supply and Chinese demand for chips like the H200. Nvidia's stock has returned 180% year to date, with a market cap of $4.5 trillion. Experts like Hans Mosesmann believe Nvidia's full-stack approach and CUDA software platform give it a strong lead. The company expects robust demand and maintains strong gross margins, with an average analyst price target of $252.67.

Surf raises $15 million for crypto AI models

Surf, an AI platform for digital-asset analysis, raised $15 million in funding led by Pantera Capital, with support from Coinbase Ventures and DCG. The company plans to use this investment to expand its crypto-native AI models and enterprise tools. Surf's platform, launched in July, uses a multi-agent system to analyze onchain data, market behavior, and sentiment, delivering insights through a chat interface. It has already generated over one million research reports and millions in annual recurring revenue. This funding highlights the growing connection between artificial intelligence and digital assets.

Microsoft 365 prices to rise in 2026 for AI features

Microsoft announced significant price increases for Microsoft 365 starting July 1, 2026, for commercial and government customers. These changes aim to support revenue and reflect over 1,100 new features, security updates, and built-in AI capabilities like Copilot. While some sales teams missed early AI growth goals, Microsoft maintains its overall AI ambitions. The price hikes will be steeper for small business and frontline tiers. Microsoft Cloud revenue and remaining performance obligations show strong growth, indicating continued demand for its services.

Sources

• Unconventional AI confirms its massive $475M seed round
• Unconventional AI Closes $475M Seed at $4.5B Valuation
• Unconventional AI’s Revolutionary $475M Seed Funding Fuels Energy-Efficient AI Hardware Vision | AI AI News
• Adobe investors want more signs AI is driving growth. Earnings will give insight.
• Adobe investors want more signs AI is driving growth. Earnings will give insight.
• Coreweave CEO defends AI circular deals as 'working together'
• 2 Popular Artificial Intelligence (AI) Stocks to Sell Before They Fall 50% and 72% in 2026, According to Wall Street Analysts
• Did Diginex’s (DGNX) AI‑Driven ESG Expansion and Surging Sales Just Shift Its Investment Narrative?
• Nvidia, SoftBank Eye $14 Billion Skild AI Investment
• Apple: Playing Switzerland In AI Battle, But Risks Losing Smartphone War (NASDAQ:AAPL)
• As Trump Greenlights AI Chip Sales to China, Should You Buy Nvidia Stock?
• Pantera, Coinbase back Surf’s $15M push to build crypto-native AI models
• Microsoft sends harsh message to millions of Microsoft 365 customers