Unconventional AI, the AI-hardware startup led by co-founder and CEO Naveen Rao, said Monday it has signed a definitive agreement to acquire NeuReality. NeuReality builds AI inference infrastructure and silicon and is headquartered in Caesarea, Israel.
Unconventional says it is building a "4-dimensional compute substrate" that targets a 1,000x improvement in AI compute efficiency over conventional architectures. It says NeuReality's team, which has spent seven years working on orchestration and data-movement overhead in inference, will "materially compress" its timeline to production systems.
"We are chasing a 1,000x improvement in AI compute efficiency, and that is a systems problem as much as a physics problem," Rao said in the announcement. NeuReality CEO Moshe Tanach and the founding team will join Unconventional, which plans to keep an engineering presence in Israel.
The money: Terms were not disclosed. Ctech reports the deal includes cash and Unconventional shares and is expected to return more than the roughly $105 million invested in NeuReality, whose backers include Arm, Samsung Ventures and OurCrowd. Ctech also reports that Unconventional raised $475 million at a $4.5 billion valuation two months after it was founded.
Both boards have approved the deal. It is expected to close in the fourth quarter of 2026, subject to customary conditions.