Ethernet Comprises over 25% of AI/ML Networking in 4Q’22 as Ethernet and Infiniband both Thrived in 2022, According to 650 Group

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AI, ML, and HPC Network Bandwidth is Growing over 100% Each Year as the Market is Poised to Exceed $8B in 2027

Incline Village, Nevada – March 8, 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 nearly $3B in 2023. The report also revealed significant regional differences in vendor performance with many records set.

Highlights for 4Q22 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 be disruptive to all verticals but at different times over the next decade
  • Hyperscaler CAPEX for 2023 will remain robust for AI/ML projects as traditional deployments begin to show weakness in 2023
  • Customers continue to evaluate the use of co-packacking and photonics to address the vast data sets required to train AI models

“The market and vendors for AI/ML networking going forward is very different compared to the traditional Ethernet Switch market in the data center,” said Alan Weckel, Founder and Technology Analyst at 650 Group. “AI/ML puts a tremendous amount of bandwidth of performance requirements on the network, and AI/ML becomes 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 move from a niche today to a significant portion of the market in 2027. Similar to how Hyperscalers like Google and Amazon disrupted traditional data center networks nearly two decades ago, AI/ML will change the shape of networking between now and the end of the decade.”

The Quarterly Data Center AI Networking report indicates that the top two vendors are Arista and NVIDIA. White box presence in AI 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

650 Group’s Data Center AI Networking Quarterly Report offers a market assessment of vendor performance and market share for Ethernet and Infiniband networking 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 sales department at 650 Group at +1 650 600 7104 or or

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: ##