networkingIt is anticipated that in 2024, both Ethernet and InfiniBand technologies will generate record profits. The data center artificial intelligence networking market is predicted to reach a value of over $15 billion by 2024, driven mostly by Ethernet, InfiniBand, and 400/800G optical transceivers, according to a recently published analysis by 650 Group, a renowned market intelligence research company for the communications, data center, and cloud sectors.

According to Alan Weckel, Founder and Technology Analyst at 650 Group, “2023 showed tremendous growth in vendor revenue related to AI/ML networking with 2024 set to surge as many customers’ Proof of Concepts (PoC) move towards production networks. AI/ML has become one of the main growth drivers for data center switching over the next five years, and it places a tremendous amount of performance and bandwidth requirements on the network.”

Significant geographical variations in vendor performance with several record sets were also disclosed by the research. Highlights for 2023 include:

  • By 2028, 1 in 5 Ethernet switch ports supplied into data centers will be connected to AI/ML and accelerated computing.
  • Arista and NVIDIA are the two top providers in this category.
  • Customers will continue to assess various networking topologies to meet AI/ML networking requirements.
  • AI/ML will drive record levels of 800 Gbps ports and Optics during their first 18 months of adoption.
  • Hyperscaler CAPEX for 2024 will continue to adjust as AI/ML projects progress towards production.

Ethernet Switching related to AI/ML

The percentage of Ethernet switching related to AI/ML and accelerated computing will expand from a niche in 2018 to a substantial share of the market in 2028 as AI bandwidth continues to increase. Before goods can scale up in production to handle AI/ML, record sales of switches and optics based on 800 Gbps are set to occur.

Arista Networks and NVIDIA are the two leading suppliers, according to the Quarterly Data Center AI Networking study. The increasing number of white box deployments in AI is a result of Google’s TPU growth. The research also outlines the distinctions in vendor shares and market projections between Ethernet and Infiniband.

About the Quarterly Report on Data Center AI Networking

The Data Center AI Networking Quarterly Report published by 650 Group offers a market assessment of vendor performance and market share for Ethernet and Infiniband networkings deployed in AI/ML and HPC. The following port speeds are included in the report: 1.6 Tbps, 3.2 Tbps, 100 Gbps, 200 Gbps, 400 Gbps, 800 Gbps, and 25 Gbps.

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