Israeli networking software company DriveNets announced Monday it has raised $410 million in a funding round that included new investor Advanced Micro Devices Inc. (NASDAQ:AMD), as its focus broadens from artificial intelligence (AI) chips to the networking infrastructure powering large-scale deployments.

The round added AMD and Red Dot Capital Partners to DriveNets’ investor roster and pushed the company’s total capital raised to about $1 billion.

Meeting Surging AI Demand

DriveNets develops networking software that enables telecom operators and data center providers to build high-speed AI networks using off-the-shelf hardware instead of costly proprietary systems.

The new capital will be used to increase inventory and support growing demand for Ethernet-based networking systems that connect AI servers and GPUs.

“This financing round marks a pivotal step in scaling our company to meet the surging demand for large-scale AI infrastructure,” DriveNets CEO Ido Susan said in a statement.

DriveNets also said it had secured more than $1 billion in customer business and has remained cash-flow ...