Israeli networking software company DriveNets announced Monday it has raised $410 million in a funding round that included new investor Advanced Micro Devices Inc.
The round added AMD and Red Dot Capital Partners to DriveNets' investor roster and pushed the company's total capital raised to about $1 billion.
Meeting Surging AI Demand
DriveNets develops networking software that enables telecom operators and data center providers to build high-speed AI networks using off-the-shelf hardware instead of costly proprietary systems.
The new capital will be used to increase inventory and support growing demand for Ethernet-based networking systems that connect AI servers and GPUs.
"This financing round marks a pivotal step in scaling our company to meet the surging demand for large-scale AI infrastructure," DriveNets CEO Ido Susan said in a statement.
DriveNets also said it had secured more than $1 billion in customer business and has remained cash-flow positive since 2025, highlighting the increasing importance of networking infrastructure in the AI era.
Why AI Networking Matters
Large-scale AI systems rely on thousands of GPUs working together, making high-speed networking infrastructure critical for moving data efficiently across computing clusters.
As AI models grow larger and more complex, networking technology is increasingly viewed as a key component of the infrastructure needed to support next-generation AI deployments.
AI Infrastructure Spending Keeps Rising
The funding announcement comes as technology companies and investors pour billions of dollars into the infrastructure needed to support increasingly powerful AI models and services.
Major technology firms, including Microsoft Corp.
The spending boom has expanded investment opportunities beyond chipmakers, with companies focused on networking, power systems, cooling technologies and data center infrastructure attracting growing investor attention.
