AI Networking and Optics: NVLink, Ethernet, CPO — October 10, 2026
Broadcom and Arista escalated their challenge to Nvidia's networking dominance this week, with Broadcom showcasing co-packaged optics (CPO) at the OCP Summit and Arista launching Ethernet architectures for scale-up AI clusters. Meanwhile, Chinese optical module leaders reported massive revenue growth driven by 1.6T transceiver demand, even as US regulatory scrutiny on high-speed optics intensifies.
AI Networking and Optics: NVLink, Ethernet, CPO — October 10, 2026
Top developments
Broadcom Showcases CPO and Scale-Up Innovations at OCP Summit
On October 8, 2026, Broadcom announced it would present its latest innovations in scale-up, scale-out, and scale-across AI networking at the 2026 OCP Global Summit. The company is highlighting its Co-Packaged Optics (CPO) technology, which integrates optical engines directly with switch silicon to reduce power consumption and latency compared to pluggable transceivers. This move reinforces Broadcom’s strategy to capture the high-bandwidth segment currently dominated by Nvidia’s proprietary interconnects
Arista Launches Ethernet Reference Architectures for Scale-Up AI
Arista Networks rolled out new Ethernet reference architectures and integration partnerships this week, positioning Ethernet as the preferred fabric for "scale-up" connectivity within AI racks, traditionally the domain of Nvidia’s NVLink. The new architectures support connecting up to 1,024 accelerators, directly attacking proprietary lock-in and offering a standardized alternative to NVLink Fusion and UALink
Nvidia Spectrum-X and Lumentum CPO Supply Chain Matures
Reports indicate that Nvidia’s co-packaged optics strategy is moving from roadmap to revenue, with Lumentum lasers powering Spectrum-X and Quantum-X switches. This supply chain maturation suggests that Nvidia is actively deploying CPO solutions to maintain its lead in power efficiency for large-scale AI factories
Local view
China’s Optical Giants Report Explosive Growth Amid Regulatory Scrutiny Chinese media highlighted the strong performance of leading optical module makers, with Innolight (Zhongji InnoLight) reporting H1 2026 revenue of ¥41.78 billion (up 182.49%) and Eoptolink reporting ¥20.91 billion (up 100.34%). Both companies cited the ramp-up of 1.6T optical modules as a primary driver. However, analysts from Citigroup noted that potential US FCC restrictions on high-end modules (specifically targeting 3.2T) could impact the sector by mid-2028, though current 1.6T demand remains robust
Context & numbers
- Broadcom Financial Outlook: Broadcom enters October with an expected $115 billion in AI semiconductor revenue for 2027, reflecting a 221% growth rate in AI-related revenue segments. The company is also managing rising financing exposure to major AI customers
- Market Share Shifts: Nvidia’s share of the Ethernet switch market has surged from under 4% to 21.5% in the past year, largely due to Spectrum-X adoption, while Arista and Cisco remain dominant in traditional data center Ethernet
- Stock Performance: On October 6, networking stocks saw significant gains driven by AI infrastructure demand, with Ciena soaring 11%, Arista advancing 4%, and Cisco rising 3%
On the radar
- OCP Global Summit Outcomes: Detailed technical specifications from Broadcom’s OCP presentations on CPO and scale-up Ethernet are expected to be released in full technical papers shortly after the summit concludes.
- US FCC Optics Restrictions: Investors are watching for concrete details on potential US restrictions against Chinese optical module makers, particularly regarding 3.2T and higher speeds, which could reshape supply chains if enacted.
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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