DriveNets, an Israel-based networking software provider, said it has completed a $410 million financing round led by Bessemer Venture Partners and Atreides Management. The funding increases the cumulative capital raised by the company to $1 billion.
Investors joining the round included AMD and Red Dot Capital as new participants, while existing investors Pitango and D1 Capital Partners also contributed. DriveNets said the capital will be used to address surging demand for large-scale AI infrastructure, according to CEO Ido Susan.
The company did not disclose the valuation attached to this latest financing. It also did not immediately respond to a request for comment seeking additional detail.
DriveNets positions its software as an alternative to proprietary networking systems, enabling telecommunications operators and data centers to design and manage networks using standard, off-the-shelf hardware. The firm says its technology supports high-speed connectivity and workloads associated with artificial intelligence.
Founded in 2015, DriveNets counts a number of technology partners among its ecosystem, including 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.
The financing comes at a time when companies that supply AI infrastructure have attracted meaningful venture capital investment, a trend that the company said has allowed such firms to expand without direct exposure to public market volatility.
Context and implications
From a network and infrastructure perspective, the injection of capital is aimed squarely at scaling operations and capacity to serve larger AI deployments. For operators and data centers seeking to support AI workloads, DriveNets' software-based approach intends to lower dependence on specialized hardware by leveraging commodity components.
While the round adds to DriveNets' war chest, some details remain undisclosed, most notably the valuation achieved in this financing. That omission leaves investors and market watchers with limited public metrics to assess the deal's terms.
Funding details - at a glance
- Amount raised in latest round: $410 million
- Round leaders: Bessemer Venture Partners, Atreides Management
- New investors: AMD, Red Dot Capital
- Returning investors: Pitango, D1 Capital Partners
- Total capital raised to date: $1 billion