Networking Software Pioneer Reaches $1 Billion in Total Funding
Israeli networking software company DriveNets has secured $410 million in a major funding round as demand for artificial intelligence infrastructure continues to reshape the global technology landscape.
The latest investment brings the company’s total funding to approximately $1 billion, underscoring growing confidence in the critical role networking technologies play in supporting the rapidly expanding AI economy.
The funding round was led by prominent investors including Bessemer Venture Partners and Atreides Management, with semiconductor giant AMD joining as a new investor alongside Red Dot Capital. Existing investors Pitango and D1 Capital Partners also participated in the raise.
AI Boom Creates New Infrastructure Demands
As artificial intelligence applications become increasingly sophisticated, the need for powerful, scalable and efficient network infrastructure has become more important than ever.
DriveNets develops software that enables telecommunications companies, cloud providers and data centres to build large-scale networks using standard hardware rather than expensive proprietary systems. This approach helps organisations reduce costs while improving flexibility and performance.
The company says the new capital will be used to support growing customer demand as AI workloads continue to place unprecedented pressure on data centre networks worldwide.
Building the Backbone of the AI Economy
While much of the public attention surrounding artificial intelligence has focused on applications such as generative AI and large language models, industry experts point out that networking infrastructure remains one of the most important components behind the scenes.
Every AI model relies on massive amounts of data being transferred between servers, processors and storage systems. As AI systems become larger and more complex, the efficiency of these networks directly impacts performance, speed and operating costs.
DriveNets’ technology is designed to address these challenges by creating software-driven networks capable of handling high-speed connectivity requirements at scale.
Strategic Partnerships Strengthen Growth
Since its founding in 2015, DriveNets has established partnerships with several major technology companies, including Broadcom, Fujitsu and Wipro.
The company’s software-centric approach aligns with broader industry trends as enterprises seek more flexible infrastructure solutions capable of supporting emerging AI applications.
AMD’s participation in the latest funding round is particularly noteworthy as semiconductor manufacturers increasingly expand their involvement beyond hardware to support the broader AI ecosystem.
Investors Bet on AI Infrastructure Future
The funding announcement reflects a broader wave of investment flowing into companies that provide the foundational technologies required to support artificial intelligence.
While AI software companies continue attracting significant attention from investors, infrastructure providers such as DriveNets are becoming equally important as organisations race to build the computing environments needed to power next-generation AI services.
Industry analysts believe networking, cloud infrastructure and data centre technologies will remain among the fastest-growing segments of the technology sector as AI adoption accelerates globally.
Positioning for Long-Term Expansion
With fresh capital secured, DriveNets is expected to accelerate product development, expand its global customer base and strengthen its position within the rapidly evolving AI infrastructure market.
As businesses and governments invest billions of dollars into artificial intelligence capabilities, companies providing the networks that connect and power these systems are increasingly viewed as critical enablers of the industry’s future growth.
