Israeli networking company DriveNets has closed a $410 million Series D, pushing the company's post-money valuation to $8.5 billion and lifting total capital raised past $1 billion. The round was co-led by Bessemer Venture Partners and Atreides Management, with new investors AMD and Red Dot Capital joining alongside existing backers Pitango and D1 Capital Partners.
Ethernet Fabric For The AI Buildout
DriveNets sells an open, Ethernet-based AI fabric used to interconnect GPUs and AI accelerators inside hyperscale and enterprise clusters. The company says its Network Cloud platform is uniquely positioned for heterogeneous AI deployments because it can perform full-stack optimization across any accelerator in a cluster — including AMD Instinct, Nvidia, and merchant silicon — without locking customers into a single vendor's networking stack.
Cash-Flow Positive With $1B In Bookings
DriveNets says it has been cash-flow positive since 2025 and currently sits on more than $1 billion in secured business. The new capital will be used to scale inventory ahead of an aggressive 2026–2027 AI fabric build cycle and to expand the company's Heterogeneous AI infrastructure platform, which is now being co-engineered with AMD and Broadcom.
System Partners And Channel Expansion
The company is going to market with system partners including Dell Technologies and Supermicro, both of which have integrated DriveNets' fabric into reference AI cluster designs. AMD's participation as a strategic investor formalises a tighter integration between AMD's Instinct accelerators and DriveNets' networking stack — a deliberate counter to the vertically integrated Intel and Nvidia approaches.
Why The Round Matters
Networking has emerged as one of the hardest bottlenecks in scaling AI training and inference. As hyperscalers continue committing tens of billions to new AI data centers, capital is flowing to companies that can move bits between accelerators efficiently. DriveNets joins a small group of well-funded AI networking specialists, and its $8.5B valuation provides a fresh benchmark for the segment heading into a busy summer of late-stage AI infrastructure rounds.
Reporting based on coverage from PR Newswire, Light Reading, Futuriom, HPCwire and Calcalist.