DriveNets raises $410 million with AMD as a new investor

• AMD joined as a new investor alongside Red Dot Capital, with existing investors Pitango and D1 Capital Partners also participating in the round
• DriveNets provides technology that allows telecom operators and data centers to build networks using standard hardware instead of costly proprietary systems, supporting high-speed connectivity and AI workloads
• The company's partners include Broadcom, Fujitsu, and Wipro, as AI infrastructure companies continue to attract significant venture capital to expand without public market exposure

DriveNets Secures $410M Funding Round with AMD as New Investor

Key Transaction Details:

Israeli networking software firm DriveNets raised $410 million in a funding round led by Bessemer Venture Partners and Atreides Management. This brings the company's total capital raised to $1 billion. The round attracted new investors AMD and Red Dot Capital, alongside existing backers Pitango and D1 Capital Partners. The post-money valuation was not disclosed.

Company Profile and Technology:

Founded in 2015, DriveNets provides software solutions that enable telecommunications operators and data centers to build networks using standard, off-the-shelf hardware instead of expensive proprietary systems. The technology supports high-speed connectivity and AI workloads. Current partners include Broadcom, Fujitsu, and Wipro.

Market Context:

CEO Ido Susan stated the funds will address surging demand for large-scale AI infrastructure. AI infrastructure companies have attracted substantial venture capital recently, allowing them to scale while avoiding public market volatility. According to Broadcom's Charlie Kawwas, network fabric performance has become "a primary driver of AI economics" as AI systems reach unprecedented scale.

Investment Implications:

AMD's participation as a new investor signals growing interest from semiconductor giants in the networking infrastructure layer critical to AI deployment. The significant funding amount reflects strong investor confidence in the AI infrastructure buildout theme, particularly in solutions that reduce costs through hardware standardization while supporting intensive AI workloads. This trend suggests continued consolidation and capital deployment in the AI infrastructure stack, with network optimization emerging as a key bottleneck and investment opportunity.