DriveNets, a leader in large-scale networking solutions, announced it has completed a $410 million Series D financing round, reaching $1 billion total capital raised. With more than $1B in secured business and having been cash-flow positive since 2025, the company will use the additional funding to scale inventory to support its growing AI fabric pipeline and expand its Heterogeneous AI infrastructure solutions. The funding round was led by Bessemer Venture Partners and Atreides Management. New investors, AMD and Red Dot Capital, joined alongside existing investors Pitango and D1 Capital Partners.
Since the company’s founding ten years ago, DriveNets’ Network Cloud has become the network of record for the world’s largest telecommunications companies. Built on the same engineering foundation, DriveNets’ Ethernet-based AI fabric supports large-scale AI infrastructures built by foundation labs, hyperscalers, NeoClouds, and large enterprises. The company is now working with leading AI vendors such as AMD, Broadcom, and others to tighten the integration between networking and compute in multi-vendor AI environments, maximizing cluster performance and GPU utilization to substantially improve token economics. It is also partnering with Dell, Supermicro, and other systems partners on go-to-market activities.
“This financing round marks a pivotal step in scaling our company to meet the surging demand for large-scale AI infrastructure,” said Ido Susan, CEO and Co-Founder of DriveNets. “The most expensive idle asset in the world right now is a GPU waiting on the network. We’re applying a decade of high-performance networking expertise to enable our customers to achieve higher utilization, reduce cost per workload, and scale their AI operations efficiently — on any AI accelerator they choose.”
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“AI infrastructure is entering a new era of open, integrated systems where compute, networking, and software scale together,” said Vamsi Boppana, senior vice president of AI at AMD. “Our support of DriveNets’ Series D reflects a shared commitment to scaling AI workloads efficiently with AMD Instinct accelerators and DriveNets’ high-performance fabric on open infrastructure, advancing open, standards-based AI data centers.”
Addressing the most expensive idle asset problem – a GPU waiting on the network
DriveNets’ AI fabric solutions are based on standard Ethernet and support scale-up, scale-out, and scale-across architectures, along with front-end and storage connectivity for large-scale AI clusters. They address two fundamental constraints in AI infrastructures today: large GPU clusters operating below peak efficiency due to network bottlenecks and reliability challenges, and slow cluster bring-up time (‘idle Capex’), especially in multi-vendor environments.
DriveNets’ high-performance AI Fabric eliminates networking bottlenecks by performing end-to-end networking optimizations across the entire AI stack, including collective communication libraries, transport protocols, NICs, the network fabric, and system-level orchestration. Some of these optimizations are developed in collaboration with leading AI accelerator vendors, such as the recently published validated reference architecture for AMD-DriveNets-based clusters that maximizes GPU utilization, reduces cost-per-token, and enables rapid deployment and efficient end-to-end scaling.
“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. “Broadcom’s AI semiconductor and Ethernet switching solutions, combined with DriveNets’ high-performance fabric, deliver the scale and efficiency that modern AI workloads demand. This collaboration reflects how open Ethernet is becoming the foundation of the next-generation AI data center.”
“AI networking is on track to surpass $200 billion by the end of the decade, driven by the shift from single-vendor stacks to multi-vendor and later heterogeneous AI infrastructures. DriveNets enters this phase with a strong combination — tier-one service provider reliability, validated AMD reference design, and the inventory position to deliver into a supply-constrained market. That positions the company well as open Ethernet becomes the foundation of next-generation AI infrastructure,” said Alan Weckel, Founder and Technology Analyst, 650 Group.
SOURCE: PRNewswire