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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move reflecting chip giants' efforts to expand their influence in data centers, AMD has strengthened its networking footprint by participating in a major funding round. Networking software firm DriveNets raised $410 million in its latest round led by Bessemer Venture Partners and Atreides Management. AMD joined as a strategic investor in the round, which successfully brought DriveNets' total capital raised to the $1 billion milestone to scale its software-based networking operations.
This investment comes amid intensifying competition with Nvidia, which dominates advanced networking via its Mellanox technologies. Per market data, AMD is positioning itself to offer flexible software alternatives for cloud and telecom operators, as DriveNets competes directly with traditional hardware solutions from incumbents like Cisco Systems. This latest capital injection represents a significant scale-up from the company's $208 million Series B round in 2021, according to Crunchbase records.
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Sign InInvestors are monitoring AMD stock performance following recent closing levels, focusing on how strategic partnerships impact data center margins. Looking ahead at the economic calendar, markets are awaiting the U.S. Core PCE Price Index release on May 28, 2026, which serves as a critical catalyst for technology stocks due to its influence on interest rate expectations.