Unconventional AI acquires Israeli AI chip startup NeuReality to accelerate chip development

On October 27 that, according to Reuters, U.S. AI hardware startup Unconventional AI announced an acquisition of Israeli AI chip company NeuReality in a cash-and-stock deal, with the transaction value undisclosed.

Unconventional AI closed a $475 million funding round last December, placing the company's valuation at $4.5 billion. The company focuses on developing highly energy-efficient AI chips inspired by biological systems and leverages AI tools to accelerate R&D. It has completed its first test chip, with a second one nearing completion.

The acquisition aims to bolster product engineering and large-scale delivery capabilities. Around 40 NeuReality employees will join Unconventional AI, which will also continue to maintain its operations in Israel.