Data Center AI Networking Surges over 100% Y/Y as InfiniBand and Ethernet Achieve Record Revenues in 1Q23; According to 650 Group

  • by

AI, ML, and HPC Network Bandwidth is Growing over 100% Each Year as the Market is Poised to Exceed $10B in 2027

Incline Village, Nevada – July 18, 2023 – A newly released report by 650 Group, a leading Market Intelligence Research firm for communications, data center, and cloud markets, indicates that the Data Center AI Networking market is expected to grow to over $3 B in 2023. The report also revealed significant regional differences in vendor performance with many records set.

Highlights for 1Q23 include:

  • Arista and NVIDIA are the largest two vendors in this segment
  • By 2027, nearly 1 in 5 Ethernet Switch ports sold into the data center will be related to AI/ML and accelerated computing.
  • AI/ML will drive record levels of 800 Gbps ports and Optics during the first 18 months of adoption.
  • Hyperscaler CAPEX for 2023 will remain robust for AI/ML projects as traditional deployments show weakness in 2023
  • Customers continue to evaluate different networking topologies to address AI/ML networking requirements.

“The first half of 2023 has shown tremendous growth in vendor revenue related to AI/ML networking with 2H 2023 and 2024 set to surge as many customers’ proof of concepts move towards production networks,” said Alan Weckel, Founder and Technology Analyst at 650 Group. “AI/ML puts a tremendous amount of bandwidth performance requirements on the network, and AI/ML is one of the major growth drivers for Data Center switching over the next five years. With bandwidth in AI growing, the portion of Ethernet switching attached to AI/ML and accelerated computing will migrate from a niche today to a significant portion of the market by 2027. We are about to see record shipments in 800Gbps based switches and optics as soon as products can reach scale in production to address AI/ML.”

The Quarterly Data Center AI Networking report indicates that the top two vendors are Arista and NVIDIA. White box switch presence in AI/ML data centers is not as high as the overall market penetration. In addition, the report highlights the difference between Infiniband and Ethernet in vendor shares and market forecasts.

About the Data Center AI Networking Quarterly Report

The Data Center AI Networking Quarterly Report offers a market assessment of vendor performance and market share for Ethernet and Infiniband networkings deployed in AI/ML and HPC. The report covers the following port speeds: 25 Gbps, 50 Gbps, 100 Gbps, 200 Gbps, 400 Gbps, 800 Gbps, 1.6 Tbps, and 3.2 Tbps.  650 Group publishes additional segment-specific reports on Data Center Switching. For more information about the report, contact the 650 Group sales by phone +1 650 600 7104 or email

About 650 Group

650 Group is a leading Market Intelligence Research firm for communications, data center, and cloud markets.  ​Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies. For more information,visit