What is the value of AI Ether?

Summary

AI Ethernet is receiving increasing attention. NVIDIA's launch of the SpectrumX-800 Ethernet and its active layout indicate that the importance of Ethernet in the AI field is becoming increasingly prominent. Compared to IB networks, Ethernet has advantages of higher compatibility, lower costs, and better flexibility. With the accelerated development of AIGC and the increasing demand for cluster capabilities and computing power, Ethernet is expected to gradually become the mainstream network interconnection solution.

Historical Evolution: The Battle Between Ethernet and IB Networks

• General vs. Dedicated: Ethernet is a widely used local area network, while IB network is suitable for high-performance computing and AI scenarios.
• The original design intention leads to different performance focuses: Ethernet has high compatibility, low cost, and good flexibility, while IB network has superior performance.
• The Ethereum network has a strong community base, and the IB network is backed by Nvidia's strong influence.

Outlook on the Endgame: Ether is the answer

• NVIDIA ≠ IB Network: NVIDIA's acquisition of Mellanox indicates that it is also considering Ethernet solutions.
• The high-performance advantages of Ethernet are gradually becoming apparent: in most cases, the performance is 10% higher than IB.
• AI Ethernet forms two major mainstream camps: the Super Ether Alliance UEC and the Nvidia Spectrum-X platform.

We believe that Ethernet has better performance, large-scale clustering capabilities, and openness, and is expected to gradually become the mainstream network interconnection solution. It is recommended to pay attention to the switch industry, including chips, manufacturing, and brand vendors.

Optical Module: LPO Solution May Become the Best Option for AI Ethernet

LPO has advantages such as low power consumption, low latency, and low cost, in line with the low-cost and low-power characteristics of AI Ethernet. The penetration rate of LPO is expected to accelerate, but it requires higher collaboration between upstream and downstream of optical module manufacturers, with leading companies like Zhongji Xuchuang and Xinyi Sheng having more advantages.