DriveNets Secures $410M Series D to Meet Surging Demand for Ethernet Fabric in Large-Scale AI Deployments

DriveNets, an Israeli company specializing in large-scale networking solutions, has successfully closed a $410 million Series D financing round, bringing its total capital raised to $1 billion. The funding was announced on June 1, 2026, and was led by Bessemer Venture Partners and Atreides Management. New investors in this round include AMD and Red Dot Capital, while existing investors such as Pitango and D1 Capital Partners also participated. The capital raised will be utilized to scale inventory and support DriveNets' expanding pipeline of AI fabric solutions, addressing the increasing demand for open, multi-vendor AI infrastructure.

Founded a decade ago, DriveNets has positioned itself as a leader in the networking space, particularly for telecommunications companies. Its flagship product, the Network Cloud, has become the network of record for major telecom operators. The company is now focusing on its Ethernet-based AI fabric, which is designed to support large-scale AI infrastructures utilized by hyperscalers, foundation labs, and large enterprises. The strategic partnerships with leading AI vendors, including AMD and Broadcom, aim to enhance the integration of networking and compute resources in multi-vendor AI environments, ultimately improving performance and efficiency.

The funding comes at a time when the AI infrastructure sector is experiencing significant growth, driven by a shift towards heterogeneous architectures that optimize resource utilization and reduce costs. DriveNets' AI fabric solutions are specifically designed to address common challenges within AI infrastructures, such as network bottlenecks and slow cluster deployment times. By leveraging its expertise in high-performance networking, DriveNets aims to eliminate these inefficiencies, thereby maximizing GPU utilization and improving the overall economics of AI operations.

As the demand for AI infrastructure continues to surge, the market is witnessing a shift from single-vendor solutions to more flexible, multi-vendor systems. This transition is expected to drive the AI networking market, projected to exceed $200 billion by the end of the decade. DriveNets is well-positioned to capitalize on this trend, with its validated reference architectures and strong inventory capabilities enabling it to meet the needs of a supply-constrained market. The company's focus on open Ethernet as the foundation for next-generation AI data centers further solidifies its role as a key player in the evolving landscape of AI infrastructure.

The successful completion of this financing round underscores the growing importance of scalable, efficient AI infrastructure solutions. With the backing of prominent investors and a robust business model, DriveNets is poised to play a pivotal role in shaping the future of AI networking. As organizations increasingly adopt heterogeneous AI architectures, the demand for solutions that enhance performance and reduce costs will likely continue to rise, positioning DriveNets favorably for future growth and innovation in the sector.