
Nvidia has surged to the top of data center Ethernet switching (21.5% in Q1 2026) by selling networking as part of integrated, GPU-centric AI platforms.
Nvidia has become the leading vendor in data center Ethernet switching, a market for networking equipment that connects computers in large facilities. The company achieved this position by selling networking products as part of integrated packages that bundle switches, specialized processors, interconnects, and software together with GPUs, rather than selling networking as a separate product. This approach differs from how traditional networking vendors historically built their market positions by selling networking platforms independently into enterprise and cloud environments. The shift matters because it may require competing vendors to develop broader strategies across computing, networking, and software to win AI infrastructure deals, and the next phase of competition will likely unfold in the enterprise market where established vendors have long customer relationships.

OpenAI, the company behind ChatGPT and Codex and the models those tools utilize, and Broadcom, an established silicon supplier, have announced a new chip called Jalapeño, designed specifically for large language model inference in data centers. The chip is intended to be deployed at large data centers, both companies claim this is just the first generation in a long-term project that will see chips refined over time.Read full article Comments

In its first earnings report since going public, the AI chipmaker forecast a narrower gross margin in its core business, scaring investors.

Revenue quadrupled to $41.45 billion compared with the same period a year ago. The company's profit, meanwhile, rose from $1.88 billion to an incredible $28.2 billion year-over-year.
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