Key insights
- DriveNets, an Israeli networking software firm, has raised $410 million with participation from new investor AMD. This funding, aimed at meeting surging demand for AI infrastructure, highlights continued strong venture capital interest in AI-enabling technologies. While not a direct public market event, AMD's involvement suggests strategic alignment and potential future collaboration, indirectly supporting the semiconductor and AI infrastructure narrative which is a key driver for the US equity market.
June 1 (Reuters) - DriveNets, an Israeli networking software firm, said it has raised $410 million in its latest funding round led by Bessemer Venture Partners and Atreides Management, taking its total capital-raise so far to $1 billion.
New investors AMD and Red Dot Capital joined the round, while existing investors Pitango and D1 Capital Partners also participated. The company would use the proceeds to meet the surging demand for large-scale AI infrastructure, CEO Ido Susan said.
DriveNets did not disclose the valuation secured after the latest funding. It did not immediately respond to a Reuters request for comment seeking the detail.
Companies providing AI infrastructure have attracted significant venture capital in recent years, enabling them to expand without exposure to public market volatility.
DriveNets allows telecommunications operators and data centers to build and manage networks using standard, off-the-shelf hardware, rather than costly proprietary systems. Its technology supports high-speed connectivity and AI workloads.
Founded in 2015, its partners include tech firm Broadcom, Japan’s Fujitsu and Indian IT services provider Wipro.
"As AI systems reach unprecedented scale, the performance of the underlying network fabric has become a primary driver of AI economics," said Charlie Kawwas, president, semiconductor solutions group, Broadcom.
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