Nvidia enters Data Center Ethernet market with its Spectrum-X networking platform
Nvidia is planning a big push into the Data Center Ethernet market. CFO Colette Kress said the Spectrum-X Ethernet-based networking solution it launched in May 2023 is “well on track to begin a multi-billion-dollar product line within a year.” The Spectrum-X platform includes: Ethernet switches, optics, cables and network interface cards (NICs). Nvidia already has a multi-billion-dollar play in this space in the form of its Ethernet NIC product. Kress said during Nvidia’s earnings call that “hundreds of customers have already adopted the platform.” And that Nvidia plans to “launch new Spectrum-X products every year to support demand for scaling compute clusters from tens of thousands of GPUs today to millions of DPUs in the near future.”
- With Spectrum-X, Nvidia will be competing with Arista, Cisco, and Juniper at the system level along with “bare metal switches” from Taiwanese ODMs running DriveNets network cloud software.
- With respect to high performance Ethernet switching silicon, Nvidia competitors include Broadcom, Marvell, Microchip, and Cisco (which uses Silicon One internally and also sells it on the merchant semiconductor market).
Image by Midjourney for Fierce Network
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In November 2023, Nvidia said it would work with Dell Technologies, Hewlett Packard Enterprise and Lenovo to incorporate Spectrum-X capabilities into their compute servers. Nvidia is now targeting tier-2 cloud service providers and enterprise customers looking for bundled solutions.
Dell’Oro Group VP Sameh Boujelbene told Fierce Network that “Nvidia is positioning Spectrum-X for AI back-end network deployments as an alternative fabric to InfiniBand. While InfiniBand currently dominates AI back-end networks with over 80% market share, Ethernet switches optimized for AI deployments have been gaining ground very quickly.” Boujelbene added Nvidia’s success with Spectrum-X thus far has largely been driven “by one major 100,000-GPU cluster, along with several smaller deployments by Cloud Service Providers.” By 2028, Boujelbene said Dell’Oro expects Ethernet switches to surpass InfiniBand for AI in the back-end network market, with revenues exceeding $10 billion.
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In a recent IEEE Techblog post we wrote:
While InfiniBand currently has the edge in the data center networking market, but several factors point to increased Ethernet adoption for AI clusters in the future. Recent innovations are addressing Ethernet’s shortcomings compared to InfiniBand:
- Lossless Ethernet technologies
- RDMA over Converged Ethernet (RoCE)
- Ultra Ethernet Consortium’s AI-focused specifications
Some real-world tests have shown Ethernet offering up to 10% improvement in job completion performance across all packet sizes compared to InfiniBand in complex AI training tasks. By 2028, it’s estimated that: 1] 45% of generative AI workloads will run on Ethernet (up from <20% now) and 2] 30% will run on InfiniBand (up from <20% now).
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References:
https://www.fierce-network.com/cloud/data-center-ethernet-nvidias-next-multi-billion-dollar-business
https://www.nvidia.com/en-us/networking/spectrumx/