DriveNets, a leading provider of cloud-native networking software, has secured $410 million in a new funding round, boosting its valuation to $8.5 billion as demand for AI infrastructure and next-generation telecommunications networks continues to surge globally.
The latest investment marks a significant milestone for the company, bringing its total funding raised since inception to approximately $1 billion. The financing underscores growing investor confidence in networking technologies that support artificial intelligence workloads, hyperscale cloud environments, and telecom infrastructure modernization.
DriveNets Expands Position in AI and Telecom Infrastructure
DriveNets develops software-driven networking solutions that enable telecommunications operators, cloud service providers, and AI companies to build scalable, high-performance network architectures using standard hardware components.
The company’s technology combines commodity hardware with proprietary software, allowing organizations to increase network capacity, improve operational efficiency, and reduce infrastructure costs while maintaining enterprise-grade reliability and performance.
As AI adoption accelerates worldwide, organizations require increasingly sophisticated networking systems capable of supporting massive data processing workloads. DriveNets’ platform is designed to address these challenges by enabling large-scale AI clusters and cloud environments to scale efficiently.
Company Reports Strong Financial Performance
Unlike many high-growth technology startups, DriveNets has achieved a strong financial position and reports that it is currently cash-flow positive.
The company also disclosed that it has secured more than $1 billion in contracted business through confirmed customer orders and active projects. This growing backlog highlights the increasing demand for networking infrastructure capable of supporting AI applications, cloud computing, and next-generation telecommunications services.
Industry analysts view the company’s financial stability as a key differentiator in an increasingly competitive infrastructure technology market.
New Capital to Support AI Infrastructure Expansion
DriveNets plans to use the newly raised capital to accelerate growth across its AI infrastructure business and expand the capabilities of its networking platform for large-scale deployments.
The company expects global demand for AI infrastructure to increase substantially throughout 2026 and 2027 as enterprises, hyperscalers, and telecommunications providers continue investing heavily in artificial intelligence technologies.
By strengthening its platform and scaling operations, DriveNets aims to capitalize on the growing need for advanced networking solutions that can support increasingly complex AI workloads and cloud environments.
AT&T Remains a Major Strategic Customer
One of DriveNets’ most prominent customers is telecommunications giant AT&T, which has deployed the company’s Network Cloud technology across significant portions of its core network infrastructure in the United States.
The long-standing relationship with AT&T has helped validate DriveNets’ technology and establish the company as a major player in the telecom networking sector.
The investment activity surrounding DriveNets has also generated significant returns for early investors, founders, and employees. Venture capital firms including Pitango and Bessemer Venture Partners are among those expected to benefit from the company’s rising valuation and continued growth trajectory.
Founded by Experienced Networking Entrepreneurs
DriveNets was founded by technology entrepreneurs Ido Susan and Hillel Kobrinsky, both of whom bring extensive experience in networking and telecommunications innovation.
Before launching DriveNets, Susan founded Intucell, a telecommunications software company that was acquired by Cisco in 2013 for approximately $475 million. Notably, Intucell achieved that successful exit after raising only $6 million in venture funding, making it one of Israel’s most celebrated startup success stories.
The founders’ track record in building scalable networking businesses has helped DriveNets attract leading investors and major enterprise customers worldwide.
Growing Demand for AI Networking Solutions
The rapid expansion of artificial intelligence applications is creating unprecedented demand for networking infrastructure capable of handling massive volumes of data and computational workloads.
As enterprises deploy larger AI models and cloud providers build increasingly sophisticated data center architectures, networking platforms have become critical components of the AI ecosystem.
DriveNets is positioning itself at the center of this transformation by providing cloud-native networking software that enables organizations to build flexible, scalable, and cost-efficient infrastructure for the AI era.
With a valuation of $8.5 billion, strong revenue generation, and a growing portfolio of enterprise customers, DriveNets is emerging as one of the most valuable networking technology companies in the global AI infrastructure market.
Motorola Solutions Acquires Israeli Counter-Drone Startup D-Fend in $1.5 Billion Deal
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape. She has written extensively on fintech, AI and emerging startups.