Founded 2015 by Ido Susan (Intucell/Cisco) and Hillel Kobrinsky (Interwise/AT&T). $997M raised, $8.5B valuation. Israel's 2nd-largest private company. AI networking for GPU clusters.
Cloud-native networking for telcos and AI infrastructure · Founded 2015 by Ido Susan and Hillel Kobrinsky · HQ Ra'anana, Israel · $997M raised · $8.5B valuation (June 2026) · Cash-flow positive · $1B+ backlog · Israel's second-largest private company · AT&T core customer · AMD strategic investor.
DriveNets at a Glance
| Company | DriveNets Ltd. |
| Founded | December 2015, Israel |
| Co-founders | Ido Susan (CEO; prev. Intucell → Cisco $475M) · Hillel Kobrinsky (prev. Interwise → AT&T $121M) |
| Headquarters | Ra'anana, Israel |
| Products | Network Cloud (telco core routing) + Network Cloud-AI (Ethernet-based AI GPU cluster fabric) |
| Total funding | $997M across 5 rounds (~$1B total capital raised) |
| Valuation | $8.5B (Series D, June 2026) |
| Revenue / backlog | $1B+ in orders and project backlog; cash-flow positive since 2025 |
| Key customer | AT&T (core deployment Sept 2020; $650M secondary purchase July 2025) |
| Key investors | Bessemer, Atreides, Pitango, D1 Capital, AMD (strategic), Red Dot, Harel |
| Employees | ~350 |
| Ranking | Israel's 2nd-largest private company (after VAST Data) |
DriveNets funding history
| Round | Amount | Valuation | Lead / notable investors |
|---|---|---|---|
| Series A (2018) | $35M | — | Pitango, Bessemer |
| Series B (2020) | $208M | — | Bessemer, Pitango, D1 Capital |
| Series C (2022) | $262M | — | D1 Capital, Bessemer, Pitango |
| Secondary (Jul 2025) | $650M* | $650M implied | AT&T (customer share purchase) |
| Series D (Jun 2026) | $410M | $8.5B | Bessemer, Atreides, AMD (strategic), Red Dot, Pitango, D1 |
*AT&T secondary was a share purchase from employees/investors, not primary capital into company. Total primary capital raised: ~$997M.
DriveNets vs. Nvidia InfiniBand: AI networking positioning
| Dimension | DriveNets (Network Cloud-AI) | Nvidia (InfiniBand / Mellanox) |
|---|---|---|
| Protocol | Standard Ethernet | Proprietary InfiniBand |
| Architecture | Open, multi-vendor, software-defined | Vertically integrated hardware + software |
| GPU vendor lock-in | Vendor-agnostic (AMD strategic investor) | Nvidia GPU ecosystem |
| Target market | Telcos + AI/GPU clusters | Hyperscalers + AI/GPU clusters |
| Value prop | Resolves "idle CapEx" — GPUs underutilized due to network bottleneck | Highest raw throughput for large-scale training |
| Market size (2030 est.) | $200B AI networking market (650 Group) | |
Susan and Kobrinsky: Serial Acquirees Who Built Their Own Category
The founding team's track record is the strongest signal in the DriveNets story. Ido Susan co-founded Intucell, a mobile network management company that Cisco acquired for $475 million in 2013. Hillel Kobrinsky founded Interwise, a web-conferencing platform that AT&T acquired for $121 million in 2007. Both founders had built companies that were bought by the largest networking and telecommunications companies in the world — and then chose to build the next-generation version independently rather than inside those acquirers.
The AT&T Deployment
The bet landed its proof point in September 2020 when AT&T — the largest telecommunications company in the United States — deployed DriveNets' Network Cloud into its core routing infrastructure. This was not a trial or a pilot; it was a production deployment inside the core of AT&T's network. In July 2025, AT&T purchased shares from DriveNets employees and investors in a $650 million secondary transaction — a direct financial investment by the customer in the vendor.
The AI Infrastructure Pivot
DriveNets' second act is AI infrastructure networking. Network Cloud-AI provides Ethernet-based networking fabric for large-scale GPU clusters. The product competes with Nvidia's InfiniBand (Mellanox), offering an open, multi-vendor alternative. AMD's strategic investment in the June 2026 round signals that the non-Nvidia chip ecosystem sees DriveNets as a key infrastructure partner.
DriveNets in the Israeli AI Infrastructure Layer
DriveNets is part of an emerging Israeli AI infrastructure cohort that includes NextSilicon (reconfigurable compute, $1.6B), WEKA (AI-native storage, $1.6B), and the broader Israeli semiconductor IP layer. Together, these companies represent an Israeli structural position in the compute, networking, and storage layers of AI infrastructure.
Frequently Asked Questions
Who founded DriveNets?
Ido Susan (CEO; prev. Intucell → Cisco $475M) and Hillel Kobrinsky (prev. Interwise → AT&T $121M), both Israeli serial entrepreneurs, co-founded DriveNets in Ra'anana in December 2015.
What does DriveNets do?
DriveNets builds cloud-native networking software for telcos and AI infrastructure — replacing proprietary routing hardware with software on standard white-box systems. Its Network Cloud-AI product provides Ethernet-based fabric for GPU clusters.
How much has DriveNets raised?
$997 million across five rounds, most recently $410 million at $8.5 billion valuation in June 2026.
Is DriveNets profitable?
Cash-flow positive since 2025 with $1B+ in orders and project backlog.
Who is DriveNets' biggest customer?
AT&T deployed Network Cloud in its core routing infrastructure in September 2020 and invested $650 million in a secondary share purchase in July 2025.
How does DriveNets compare to Nvidia networking?
DriveNets' Ethernet-based AI fabric competes with Nvidia's InfiniBand (Mellanox) interconnect, offering an open, multi-vendor alternative for GPU cluster networking. AMD is a strategic investor.
Related Olam Coverage
NextSilicon: Israel's $1.6B Nvidia Alternative · WEKA: The Israeli Storage Layer for GPU Compute · CEVA · Israeli AI Economy Map · The Builders
Profile last reviewed: August 2026.
