Key Takeaways
- • DriveNets completed a $410 million Series D funding round at an $8.5 billion valuation, bringing total capital raised to over $1 billion since its founding ten years ago.
- • AMD joined as a new investor alongside round leaders Bessemer Venture Partners and Atreides Management, with Red Dot Capital also participating; existing investors Pitango and D1 Capital Partners contributed to the round.
- • The Israeli networking software company has achieved cash-flow positivity since 2025 and has secured over $1 billion in committed business, positioning it as the second most valuable privately-held company in Israel.
- • DriveNets is deploying its Ethernet-based AI fabric to address GPU utilization inefficiencies in large-scale AI deployments, focusing on reducing idle compute costs and improving token economics across multi-vendor AI environments.
- • The company is expanding partnerships with major AI vendors (AMD, Broadcom) and systems integrators (Dell, Supermicro) to optimize the integration between networking and compute infrastructure for hyperscalers and enterprise AI deployments.
Summary
DriveNets, an Israeli provider of large-scale networking solutions, announced the completion of a $410 million Series D funding round on June 1, 2026, bringing its total capital raised to over $1 billion. The round values the company at $8.5 billion, making it Israel's second most valuable privately-held company. The funding was led by Bessemer Venture Partners and Atreides Management, with advanced semiconductor manufacturer AMD making its first investment in the company. Red Dot Capital joined as an additional new investor, while existing investors Pitango and D1 Capital Partners participated in the round.
The company's financial trajectory reflects strong operational momentum. DriveNets has achieved cash-flow positivity since 2025 and has secured over $1 billion in committed business, underscoring demand for its networking solutions. CEO and Co-Founder Ido Susan emphasized the strategic importance of the funding, stating: "The most expensive idle asset in the world right now is a GPU waiting on the network." This observation encapsulates DriveNets' core value proposition—enabling customers to maximize GPU utilization, reduce cost per workload, and scale AI operations efficiently across any accelerator platform.
Over the past decade, DriveNets' Network Cloud has become the primary networking platform for major telecommunications providers. The company has extended this expertise into AI infrastructure through its Ethernet-based AI fabric, which addresses critical inefficiencies in large-scale AI deployments by hyperscalers, foundation labs, NeoClouds, and large enterprises. The company is actively collaborating with leading AI vendors such as AMD and Broadcom to tighten integration between networking and compute resources in multi-vendor environments, with the goal of maximizing cluster performance and GPU utilization while improving token economics.
DriveNets is leveraging the Series D proceeds to scale inventory, support its growing AI fabric pipeline, and expand its Heterogeneous AI infrastructure solutions. The company has established go-to-market partnerships with major systems integrators including Dell and Supermicro. AMD's participation as a new investor signals strategic alignment between the chipmaker and DriveNets, particularly as AI infrastructure buildout accelerates and vendors seek to optimize the interaction between processors and networking layers.
The company's financial trajectory reflects strong operational momentum. DriveNets has achieved cash-flow positivity since 2025 and has secured over $1 billion in committed business, underscoring demand for its networking solutions. CEO and Co-Founder Ido Susan emphasized the strategic importance of the funding, stating: "The most expensive idle asset in the world right now is a GPU waiting on the network." This observation encapsulates DriveNets' core value proposition—enabling customers to maximize GPU utilization, reduce cost per workload, and scale AI operations efficiently across any accelerator platform.
Over the past decade, DriveNets' Network Cloud has become the primary networking platform for major telecommunications providers. The company has extended this expertise into AI infrastructure through its Ethernet-based AI fabric, which addresses critical inefficiencies in large-scale AI deployments by hyperscalers, foundation labs, NeoClouds, and large enterprises. The company is actively collaborating with leading AI vendors such as AMD and Broadcom to tighten integration between networking and compute resources in multi-vendor environments, with the goal of maximizing cluster performance and GPU utilization while improving token economics.
DriveNets is leveraging the Series D proceeds to scale inventory, support its growing AI fabric pipeline, and expand its Heterogeneous AI infrastructure solutions. The company has established go-to-market partnerships with major systems integrators including Dell and Supermicro. AMD's participation as a new investor signals strategic alignment between the chipmaker and DriveNets, particularly as AI infrastructure buildout accelerates and vendors seek to optimize the interaction between processors and networking layers.
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