DriveNets Raises $410M to Scale AI Networking Platform

DriveNets, an Israeli networking infrastructure company focused on large-scale AI and cloud systems, announcedit has raised $410 million in a Series D funding round, bringing its total capital raised to more than $1 billion. The company said it will use the proceeds to expand inventory and scale its AI networking “fabric” platform as demand for large-scale AI infrastructure accelerates.

The round was led by Bessemer Venture Partners and Atreides Management, with participation from new investors AMD and Red Dot Capital, alongside existing backers including Pitango and D1 Capital Partners. DriveNets said it has already secured more than $1 billion in business commitments and has been cash-flow positive since 2025.

The company develops Ethernet-based networking systems designed to connect large AI compute clusters used by hyperscalers, telecom operators, and AI infrastructure providers. It argues that modern AI systems are increasingly constrained not by compute power alone, but by network bottlenecks that leave high-cost GPUs underutilized.

DriveNets said its platform is designed to improve GPU utilization and reduce “idle compute” by optimizing data movement across AI clusters, particularly in emerging multi-vendor environments where different accelerators operate within the same system.

The company is also working with semiconductor and infrastructure partners including AMD and Broadcom, as well as systems vendors such as Dell and Supermicro, to integrate networking and compute layers more tightly across AI deployments.

The funding is intended support expansion into heterogeneous AI architectures, where different types of accelerators are orchestrated within the same cluster to optimize cost and performance across AI workloads.