DriveNets secures $410 million in latest funding round, AMD joins as investor

DriveNets, an Israeli company specializing in networking software, has secured $410 million in its latest funding round, pushing its total capital raised to an impressive $1 billion. The funding round was spearheaded by Bessemer Venture Partners and Atreides Management, with significant participation from new investors AMD and Red Dot Capital, alongside existing backers Pitango and D1 Capital Partners.

CEO Ido Susan stated the company will utilize the substantial capital infusion to address the escalating demand for large-scale artificial intelligence infrastructure. DriveNets' technology allows telecommunications operators and data centers to construct and manage their networks using readily available, standard hardware, offering a cost-effective alternative to proprietary systems. This approach supports high-speed connectivity essential for demanding AI workloads.

Companies focused on AI infrastructure have seen a surge in venture capital investment in recent years, enabling them to grow rapidly without the volatility of public markets. DriveNets, founded in 2015, collaborates with major tech firms like Broadcom, Japan's Fujitsu, and India's Wipro. Broadcom's semiconductor solutions group president, Charlie Kawwas, noted the critical role of network performance in the economics of AI systems as they scale to unprecedented levels.

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As AI systems reach unprecedented scale, the performance of the underlying network fabric has become a primary driver of AI economics.