Ethernet Dominates AI Scale-Out Networking as InfiniBand Experiences Remarkable Growth

Ethernet Dominates AI Scale-Out Networking

A recent report from the Dell’Oro Group has highlighted a significant trend in the realm of AI scale-out networking, emphasizing the substantial lead Ethernet holds over InfiniBand despite a notable rebound in InfiniBand sales. During the first quarter of 2026, Ethernet switch sales in AI back-end networks soared, accounting for approximately two-thirds of the overall data center switch sales within AI clusters. This surge reflects the ever-growing demand for high-performance networking solutions that can keep pace with the rapid expansion of artificial intelligence technologies.

According to Sameh Boujelbene, Vice President at Dell’Oro Group, “The swift growth of AI clusters is fueling a strong demand for robust back-end networks.” The report indicates that although InfiniBand sales have tripled due to the release of NVIDIA's advanced Blackwell Ultra platform with 800 Gbps switches, Ethernet remains a dominant force. The rise in InfiniBand’s sales can be attributed not only to new deployments but also to upgrades in existing systems, bolstering its role within established infrastructures.

Competitive Landscape

The competitive landscape in AI networking is described as dynamic, with Celestica emerging as the leading provider of Ethernet switches in AI clusters during this quarter, followed closely by NVIDIA. Arista ranked third, showcasing a significant portion of deferred revenue related to its AI products, indicating potential for future growth. Cisco also gained market share, ranking fourth, as the industry anticipates further diversification among customers and intensified competition among vendors.

The report outlines additional intriguing insights, noting that the vast majority of Ethernet switch shipments and revenues were driven by the deployment of 800 Gbps switches. Furthermore, the anticipated introduction of 1600 Gbps switches in the latter half of 2026 is set to create new opportunities for growth, further shifting the competitive balance in the market.

Insights from the 1Q 2026 Data Center Switch Report

Dell’Oro Group's Quarterly Report on Data Center Switches in AI Back-end Networks offers an exhaustive analysis of the switches utilized in AI networking, specifically designed to connect accelerated servers. The report encompasses detailed information surrounding manufacturers' revenues, ports shipped, and average selling prices for various types of Ethernet switches across a range of speeds, from below 100 Gbps to above 3.2 Tbps. Additionally, it provides a revenue breakdown according to geographical regions and customer segments, which includes major US cloud providers, leading Chinese cloud players, and large enterprises.

The findings signify not only the existing state of the market but also project the future landscape of networking technologies in AI environments. As demand continues to rise, stakeholders will likely witness evolution in user needs and technological advancements, influencing decision-making in the sector.

For those seeking in-depth knowledge regarding market trends and vendor performance in AI back-end networks, further details can be acquired from Dell’Oro Group’s report, which is readily available for interested parties.

Conclusion

As Ethernet retains its lead in the AI scale-out networking market, and InfiniBand shows promise through remarkable growth, this sector is prime for ongoing developments. With dynamic shifts in the vendor landscape and the impending rollout of faster switches, the networking market tailored for AI applications is set to experience substantial transformation in the upcoming years. The insights provided by the Dell’Oro Group's report equip industry players with the necessary data to make informed strategic decisions.

For more information on the report or inquiries, interested parties can reach out to Dell’Oro Group directly.