en.Wedoany.com Reported - On June 1, Israeli network software company DriveNets announced the completion of a $410 million Series D funding round, bringing its total funding to $1 billion. The round was led by Bessemer Venture Partners and Atreides Management, with AMD and Red Dot Capital joining as new investors, and existing investors including Pitango and D1 Capital Partners continuing to participate.

The core market targeted by DriveNets' latest funding is data center networking for large-scale AI clusters. As foundation model providers, cloud service providers, new computing clouds, and large enterprises continue to expand AI infrastructure, the operational efficiency of GPU clusters increasingly depends on underlying network performance. DriveNets claims its Ethernet-based network solution supports horizontal scaling, vertical scaling, and cross-cluster expansion, covering front-end networks and storage connections to alleviate network bottlenecks, reliability issues, and prolonged cluster deployment times in large-scale GPU clusters. The company stated that the new funds will be used to expand inventory capacity, support the AI network product pipeline, and further develop solutions for heterogeneous AI infrastructure.

This company has primarily served large telecommunications operators in the past, with its Network Cloud product deployed in the production networks of tier-one operators such as AT&T and Comcast. Currently, DriveNets is migrating its carrier-grade network decoupling architecture, standard hardware adaptation, and high-reliability operational capabilities to AI data centers. Compared to closed proprietary network stacks, the open Ethernet solution emphasizes multi-vendor device collaboration, allowing customers to combine deployments across different AI accelerators, switching chips, servers, and system partners. DriveNets states that its AI network solution can achieve end-to-end optimization in areas such as communication libraries, transport protocols, network interface cards, network architecture, and system orchestration, thereby improving GPU utilization and reducing unit workload costs.

Industry chain collaboration has also become a key signal in this funding round. DriveNets is strengthening integration with AI and semiconductor companies such as AMD and Broadcom, and advancing market delivery with system partners including Dell and Supermicro. AMD's participation as a new investor reflects that AI accelerator vendors are placing greater emphasis on the open network ecosystem; Broadcom's related statements also indicate that the underlying network architecture is becoming a critical variable in the economics of AI systems. As training and inference workloads continue to expand, competition in AI data centers is extending from "chip supply" to network, storage, servers, scheduling software, and system-level delivery capabilities. Insufficient network performance can leave expensive GPUs in a waiting state, amplifying capital expenditure waste on computing power, which is why DriveNets identifies "GPUs waiting for the network" as a major market pain point.

For the information and communications industry, this funding round indicates that data center networking is transitioning from the traditional cloud computing era to the AI cluster era. Carrier-grade network software companies, Ethernet switching chip vendors, server manufacturers, and AI chip companies are redefining the infrastructure value chain. Subsequent variables will focus on whether DriveNets can translate its reliability experience from carrier production networks into large-scale AI cluster delivery capabilities, and whether open Ethernet networks can form sufficiently mature deployment standards in multi-vendor AI infrastructure. If related solutions continue to be implemented, data center networking will become a more deterministic sub-sector within AI infrastructure investment.

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