AI Networking and Optics: NVLink, Ethernet, CPO — October 16, 2026
NVIDIA and Cisco have introduced the Ultra-Dense Small Form Factor Pluggable (USFP) standard to scale AI factories, while Broadcom showcased its third-generation co-packaged optics and Tomahawk 6 switches at the OCP Global Summit. Meanwhile, Goldman Sachs raised global optical transceiver shipment forecasts by over 20%, driven by accelerating demand for 1.6T modules in North American AI clusters.
AI Networking and Optics: NVLink, Ethernet, CPO — October 16, 2026
Top developments
NVIDIA and Cisco Define New USFP Optical Standard
On October 12, 2026, NVIDIA and Cisco announced plans for the Ultra-Dense Small Form Factor Pluggable (USFP), a new high-density 400Gb/s-per-lane optical module designed to equip hardware ecosystems for next-generation AI factories. This initiative aims to support the transition from current pluggable transceivers toward higher bandwidth requirements, specifically targeting 1.6 Tbps optical interconnects needed for large-scale GPU clusters. The move signals a coordinated industry effort to standardize optics for AI workloads, potentially challenging proprietary interconnects like NVLink in specific scale-out scenarios.
Broadcom Unveils Tomahawk 6 and Gen-3 CPO at OCP Summit
During the 2026 OCP Global Summit (Oct 12–15), Broadcom highlighted its latest AI networking innovations, including the Tomahawk 6 StrataXGS Ethernet switch ASIC delivering 102.4 Tb/sec switching performance and third-generation co-packaged optics (CPO) solutions like the TH6-Davisson. Broadcom’s keynote emphasized scaling AI infrastructure through open innovation, positioning Ethernet and CPO as critical for 100,000-accelerator clusters. These releases aim to address rising bandwidth and power-efficiency needs, directly competing with NVIDIA’s Spectrum-X and InfiniBand fabrics in the scale-out market.
Cisco Executive Predicts Shift from Copper to Optics for Scale-Up
At the AI Data Pipeline Forum on October 14, 2026, Rakesh Chopra of Cisco stated that AI infrastructure networking is nearing a shift from copper to optics as scale-up domains expand beyond a single rack. This transition is driven by the physical limitations of copper interconnects when connecting larger clusters of GPUs and accelerators. The shift underscores the growing importance of optical technologies, including USFP and CPO, in maintaining latency and bandwidth efficiency for massive AI training runs.
Arista Networks Hits All-Time Highs on Open Ethernet Momentum
Arista Networks stock reached an all-time high following its launch of an open Ethernet rack-scale portfolio in partnership with AMD, Broadcom, Meta, and Microsoft. The company continues to position Ethernet as a viable alternative to NVIDIA’s proprietary NVLink for scale-up networking, with recent revenue growth reflecting strong hyperscaler demand. Arista’s strategy highlights the industry’s push toward standardized, open Ethernet fabrics that can integrate with diverse accelerator architectures, challenging NVIDIA’s vertical integration model.
Local view
Chinese media outlets are closely monitoring the impact of Goldman Sachs’ recent upgrade to global optical module shipment forecasts, which raised projections for 800G+ shipments by over 30% for 2026–2028. Reports highlight that while Chinese leaders like Zhongji Innolight (InnoLight) are benefiting from North American AI demand, other domestic players in Hubei province lag due to lower overseas revenue exposure. Additionally, local analysts note that the OCP Summit served as a validation window for Co-Packaged Optics (CPO), with InnoLight’s 1.6T silicon photonics modules entering mass production and securing orders from major clients.
Context & numbers
- Shipment Forecasts: Goldman Sachs raised its forecast for 800G+ optical transceiver shipments by 31% for 2026, 39% for 2027, and 36% for 2028, indicating sustained demand beyond initial expectations.
- Broadcom Financials: Broadcom enters October with an expected $115 billion in AI semiconductor revenue for 2027, though it faces rising financing exposure to major AI customers.
- InnoLight Performance: Zhongji Innolight reported 18.99 million optical module units sold in the first half of 2026, with overseas revenue growing 209.9% year-over-year to 39.615 billion yuan.
- Switching Speeds: Broadcom’s Tomahawk 6 delivers 102.4 Tbps, with roadmaps extending to 204.8 Tbps (Tomahawk 7) and 409.6 Tbps (Tomahawk 8).
On the radar
- CIOE Expo Insights: Upcoming analysis from Nomura Securities suggests that 1.6T transceiver capacity will increase, with 3.2T/6.4T NPO/CPO solutions accelerating in deployment, and silicon photonics penetration rates expected to rise.
- USFP vs. CPO Debate: Industry commentators are debating the practicality of the new USFP pluggable standard versus integrated CPO solutions, noting that while CPO offers lower power consumption for top-tier supercomputers, pluggables remain simpler for maintenance and general compute coverage.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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