Dell'Oro Data Center Switch Report: The Market Is Choosing Ethernet for AI
Dell'Oro Group just released their 4Q 2024 Ethernet Switch - Data Center Report showing record-breaking sales fueled by AI buildouts and a recovery...
14 min read
Art Fewell
:
May 26, 2025 12:43:30 PM
When a CFO approves a $50 million GPU cluster purchase, they're essentially buying the world's most expensive waiting rooms. The uncomfortable truth about AI training is that these cutting-edge NVIDIA Blackwell B200 and AMD MI350X accelerators each costing upward of $100,000 spend a shocking amount of their time just... waiting. Waiting for data. Waiting for other GPUs. Waiting for the network to catch up.
Understanding where time actually goes in a training job isn't just academic curiosity it's the difference between a system that delivers ROI and one that burns millions while your competition races ahead. Whether you're architecting infrastructure for the next frontier model or optimizing edge AI deployments for autonomous drones, the fundamental anatomy of large language models training jobs determines whether your network becomes the accelerant or the bottleneck.
Think of a training job like a Formula 1 pit crew working on the world's most complex race car. Every second the car sits in the pit represents lost competitive advantage, yet the complexity of the operation means most of the "work" happens between the actual racing. In AI training, your GPUs are those million-dollar race cars, and the network is the pit crew coordination system that determines whether you're executing flawless 2-second tire changes or fumbling around for 20 seconds while your competitors lap you.
Recent studies of large-scale training jobs reveal that GPUs in poorly optimized systems achieve only 30-40% utilization during training. For a cluster of 1,000 NVIDIA B200 GPUs, representing roughly $100 million in hardware, this inefficiency translates to $60 million worth of idle silicon. The primary culprit? Network-induced stalls that create a cascading effect across the entire training job.
Let's dissect a real-world example: training a 70-billion parameter foundation model using 512 NVIDIA GB200 Grace Blackwell Superchips connected via 800 Gbps Ultra Ethernet. This represents roughly $80 million in compute hardware attempting to create the next breakthrough in generative AI and large language models.
Before diving into the training anatomy, it's crucial to understand the infrastructure orchestration that makes large-scale training possible. Modern AI training doesn't happen on standalone servers but within sophisticated orchestration platforms like Kubernetes with specialized schedulers such as Volcano or NVIDIA's Base Command Platform.
When a data scientist submits a training job for our 70B parameter model, the scheduler must solve an extraordinarily complex placement problem. It needs to identify 512 available GB200 Superchips that meet specific requirements: optimal network topology (preferably within the same rack or adjacent racks to minimize NVLink hop counts), sufficient cooling capacity for the 1000W TDP per B200 GPU, and coordinated access to the shared storage systems containing petabytes of training data.
The scheduler also must consider fault domains. A single training job represents weeks of computation time and millions of dollars in resources. If a power supply fails in one rack, the entire job shouldn't fail. This drives sophisticated placement algorithms that balance performance optimization (keeping GPUs close for minimal communication latency) with resilience requirements (spreading critical replicas across fault domains).
Once the placement decision is made, the container orchestration system begins the complex startup sequence. Each GB200 Superchip starts by loading specialized container images containing the training framework (PyTorch, JAX, or TensorFlow), the NCCL communication libraries optimized for the specific hardware topology, and the model code itself. This process alone can take 2-5 minutes across hundreds of nodes.
When the training job launches, what appears to be a simple "start training" command triggers a choreographed dance of unprecedented complexity. Each GB200 Superchip containing two B200 GPUs and a Grace CPU connected by 900 GB/s NVLink must:
This initialization phase, running on cutting-edge hardware, still requires 5-15 minutes. During this time, the network experiences what engineers call "startup congestion"—a synchronized traffic pattern as every GPU simultaneously attempts to communicate with every other GPU.
Once training begins, the job settles into a rhythmic pattern that repeats millions of times. Each iteration follows the same sequence:
Forward Pass (Network Quiet Period): For roughly 100-200 milliseconds, the network remains relatively calm. Each GPU independently processes its assigned batch of training data through the neural network layers. The GB200's 208 billion transistors work in harmony, with minimal inter-GPU communication required. This is when your hardware investment pays dividends—pure computation at 20 petaFLOPS per GPU.
Gradient Computation (Network Preparation): Another 50-100 milliseconds of local computation as each GPU calculates how the model parameters should change based on its training examples. Still minimal network activity, but the calm before the storm.
All-Reduce Synchronization (Network Chaos): Then comes the moment that defines your training job's success or failure. All 1,024 GPUs must synchronize their gradient updates using NCCL's all-reduce operation. In perfectly optimized conditions, this takes 20-50 milliseconds. In poorly configured networks, it can take 500+ milliseconds, a 10x difference that compounds across millions of iterations.
During all-reduce, your 800 Gbps Ultra Ethernet fabric experiences what's essentially a synchronized traffic storm. Every GPU needs to send data to every other GPU, creating the perfect conditions for network congestion. This is where endpoint-scheduled networks show their superiority over traditional switch-scheduled fabrics the distributed intelligence can coordinate this chaos far more effectively than centralized switching logic.
To understand why endpoint scheduling wins, consider what happens during the all-reduce storm. In a traditional switch-scheduled fabric, the switches attempt to centrally manage this chaos using deep buffers that can store hundreds of milliseconds worth of traffic. While this approach can work, it introduces significant latency penalties as packets must traverse these deep buffer hierarchies, and the centralized scheduling logic becomes a bottleneck when coordinating traffic across thousands of GPUs.
Endpoint-scheduled fabrics take a fundamentally different approach. Instead of relying on massive switch buffers, they distribute the scheduling intelligence to the endpoints themselves typically SmartNICs or DPUs connected to each GPU. When NCCL initiates an all-reduce operation, these intelligent endpoints coordinate directly with each other to orchestrate the traffic flow.
This distributed coordination allows for several critical optimizations. First, endpoints can implement sophisticated backpressure mechanisms that prevent network congestion before it occurs, rather than trying to manage it after the fact. Second, they can dynamically adapt to changing network conditions, routing traffic around congested links in real-time. Third, they eliminate the latency overhead of deep switch buffers by using end-to-end flow control that prevents traffic from being injected into the network unless the destination is ready to receive it.
The result is remarkable: endpoint-scheduled fabrics can maintain consistent 20-30ms all-reduce times even as the system scales to thousands of GPUs, while switch-scheduled alternatives often see latency increase exponentially with scale. For organizations investing hundreds of millions in AI infrastructure, this architectural choice literally determines whether their training jobs complete successfully or fail due to network-induced timeouts.
Every 1,000-10,000 iterations, the training job hits a checkpoint a complete snapshot of the model state saved to persistent storage. For our 70B parameter model, this means writing approximately 280 GB of data across hundreds of GPUs simultaneously to the storage network.
This operation creates a fundamentally different traffic pattern: instead of the east-west GPU-to-GPU traffic dominating normal training, checkpointing generates massive north-south traffic as all GPUs simultaneously write to storage. Without proper storage network isolation, this can introduce 10-30 second stalls that ripple through the entire training process.
The challenge intensifies when you consider the frequency and coordination requirements. Modern training jobs checkpoint not just for fault tolerance, but for experiment management. Researchers may want to save intermediate model states to analyze training dynamics, or create branch points where they can explore different hyperparameter settings. This means checkpoint operations might occur every few minutes rather than every few hours.
The storage network must handle this surge without impacting the ongoing training communication. This drives the need for separate storage fabrics, often implemented as dedicated 400G or 800G Ethernet networks optimized for high-throughput, sequential write patterns. These storage networks typically employ different congestion management strategies than the training network specialized for bulk data movement rather than the latency-sensitive collective operations.
Advanced checkpointing systems implement sophisticated techniques to minimize network impact. Gradient compression can reduce checkpoint sizes by 4-8x, trading slightly longer compression times for dramatically reduced network traffic. Asynchronous checkpointing allows training to continue while checkpoint data is written in the background, though this requires careful memory management to avoid conflicts between ongoing training and checkpoint writes.
Some systems implement hierarchical checkpointing, where local NVMe storage on each node buffers checkpoint data before writing to shared storage. This transforms the bursty, synchronized checkpoint pattern into a more manageable sustained write load that's easier for the storage network to handle.
The networking implications are profound. Storage networks optimized for AI training require fundamentally different characteristics than traditional enterprise storage: much higher burst capacity, better support for synchronized write patterns, and integration with GPU memory systems to minimize CPU overhead during checkpointing operations.
Ultra Ethernet's emerging standards address many of these challenges by providing standardized APIs for storage acceleration and better integration between training and storage networks. The specification includes provisions for credit-based flow control that can prevent checkpoint traffic from overwhelming storage targets, and standardized congestion signaling that allows storage systems to indicate when they're approaching capacity limits.
Understanding these three phases reveals why network design is so critical for AI training success. A training job isn't just a computation problem it's a distributed systems orchestration challenge where the network serves as both the coordination mechanism and the primary bottleneck.
The most sophisticated training systems implement dynamic load balancing that monitors all three phases and adapts accordingly. If gradient synchronization is taking too long, the system might reduce batch sizes or adjust NCCL's communication algorithms. If checkpoint operations are creating stalls, the system might adjust checkpoint frequency or implement more aggressive compression.
This dynamic adaptation requires deep integration between the training framework, the communication libraries, and the network infrastructure. The network can't just be a passive transport layer it must provide real-time visibility into congestion conditions, latency variations, and bandwidth utilization patterns that allow the training system to make optimal decisions.
While frontier models grab headlines, edge AI represents a completely different training paradigm with its own network challenges. Consider training a computer vision model for autonomous pharmaceutical manufacturing robots a real-world scenario where millisecond decisions prevent million-dollar batch contamination.
Edge AI training typically occurs on smaller clusters perhaps 8-16 AMD MI325X accelerators co-located with the manufacturing equipment. The training dataset (camera feeds, sensor readings, production metrics) never leaves the facility, addressing both latency and regulatory compliance requirements.
This local approach fundamentally changes the network requirements. Instead of needing massive bandwidth between thousands of GPUs, edge training prioritizes ultra-reliable, deterministic communication between a smaller number of accelerators. The MI325X's 288GB of HBM3E memory per accelerator allows larger models to fit within fewer devices, reducing the communication overhead that dominates large-scale training.
The pharmaceutical manufacturing example illustrates these unique requirements perfectly. Manufacturing equipment generates continuous streams of high-resolution imagery, spectroscopy data, and environmental sensor readings. This data must be processed in real-time to detect anomalies like contamination, equipment malfunction, or process deviations that could compromise entire production runs worth millions of dollars.
Unlike frontier model training where occasional network hiccups might slow progress but not cause immediate harm, edge AI training operates under strict real-time constraints. A camera system monitoring pharmaceutical tablet coating processes might need to detect defects within 100 milliseconds to trigger corrective actions before defective products continue down the production line.
Instead of training for weeks on massive datasets, edge AI training might iterate hundreds of times per day on smaller, specialized models. A pharmaceutical manufacturing AI might retrain hourly as production conditions change, requiring the network to support frequent model updates across the edge infrastructure. This rapid retraining cycle is often more akin to fine-tuning pre-trained models rather than training from scratch, allowing for quick adaptation to changing operational conditions.
This rapid iteration pattern creates unique networking challenges. Rather than the steady-state communication patterns of large-scale training, edge networks must handle frequent model deployment and update cycles. Each time a new model is trained, it must be validated, packaged, and deployed to production systems often while manufacturing continues uninterrupted.
The network must support versioning and rollback capabilities. If a newly trained model performs poorly in production, the system must quickly revert to the previous version while diagnosing the issue. This requires sophisticated model management infrastructure that can coordinate updates across multiple edge nodes while maintaining operational continuity.
Consider a drone delivery operation training models for real-time obstacle avoidance. Unlike a frontier model trained once and deployed widely, these edge models must continuously adapt to local conditions weather patterns, seasonal vegetation changes, new construction, and evolving air traffic patterns. The training network must support these continuous adaptations while ensuring that safety-critical operations never lose coverage.
Edge training networks prioritize ultra-low latency over raw bandwidth. While frontier model training might accept 50ms latency to achieve maximum throughput, edge AI training requires sub-5ms response times even if it means operating at lower bandwidth utilization.
This latency focus drives different network architectures. Edge deployments often employ dedicated point-to-point connections between critical components rather than shared fabrics. A pharmaceutical robot might have dedicated fiber connections to its AI processing cluster, ensuring deterministic 1-2ms communication times that shared network infrastructure couldn't guarantee.
The trade-offs extend to protocol choices as well. While large-scale training relies heavily on TCP and RDMA over Converged Ethernet (RoCE) for their throughput capabilities, edge applications often prefer UDP-based protocols or specialized real-time protocols that prioritize latency predictability over maximum bandwidth utilization.
Edge AI training typically employs a three-tier network architecture that reflects the different performance requirements and operational constraints:
The sensor network connects manufacturing equipment, cameras, and environmental sensors to edge compute nodes. This network requires deterministic, microsecond-level latency for safety-critical applications. Often implemented using dedicated point-to-point connections or specialized industrial protocols like TSN (Time-Sensitive Networking).
In pharmaceutical manufacturing, sensor networks might monitor dozens of parameters simultaneously: temperature, humidity, pressure, chemical composition, and visual characteristics. Each sensor reading must reach the AI processing system within strict timing windows to enable real-time decision-making. Missing a single sensor reading could compromise product quality or safety.
The training cluster provides high-bandwidth connections between AI accelerators for rapid model updates. Unlike large-scale training clusters, edge training clusters prioritize reliability and deterministic performance over absolute maximum bandwidth. They often employ redundant connections and specialized failover mechanisms to ensure continuous operation.
Edge training clusters frequently use different collective communication patterns than large-scale training. With fewer GPUs involved, all-reduce operations complete much faster, but the network must support more frequent communication as models adapt rapidly to changing conditions. The MI325X accelerators might coordinate several times per minute rather than the constant communication patterns of frontier training.
The coordination network provides reliable connections to central management systems for model versioning, monitoring, and coordination across multiple edge sites. This network typically operates over existing enterprise infrastructure but requires specialized quality of service guarantees to ensure management operations don't interfere with real-time training and inference.
The coordination network enables centralized oversight of distributed edge training operations. A pharmaceutical company might operate dozens of manufacturing sites, each with its own edge AI training infrastructure. The coordination network allows central data science teams to monitor training progress, deploy new model architectures, and coordinate updates across the entire network while ensuring local autonomy for real-time operations.
Edge AI training presents unique challenges that don't exist in large-scale datacenter environments. Environmental factors play a much larger role electromagnetic interference from manufacturing equipment, temperature variations in non-datacenter environments, and power quality issues that can affect network stability.
Network reliability becomes paramount when edge AI systems control safety-critical operations. Unlike datacenter training where network failures might slow progress, edge network failures can shut down production lines or compromise safety systems. This drives redundant network designs and sophisticated failover mechanisms that can maintain operations even during network component failures.
Security considerations are also more complex in edge environments. Manufacturing facilities often have less sophisticated cybersecurity infrastructure than dedicated datacenters, yet edge AI systems may process highly sensitive intellectual property or safety-critical data. The network must provide strong isolation and encryption while maintaining the low latency required for real-time operations.
Understanding training job anatomy requires recognizing how small inefficiencies compound into massive problems. Consider this cascading failure scenario:
Initial Network Congestion (50ms delay) → NCCL Timeout and Retry (additional 200ms) → GPU Memory Pressure (garbage collection pause: 100ms) → Load Imbalance (some GPUs finish early, others struggle: 300ms variation) → Checkpoint Coordination Failure (storage network overwhelmed: 10s delay)
What started as a minor 50ms network delay has created a 10+ second stall affecting $100 million worth of hardware. Multiply this across thousands of iterations, and network optimization becomes the difference between a successful training run and a failed one.
NCCL (NVIDIA Collective Communications Library) represents the nervous system of large-scale training. To understand its network requirements, consider the all-reduce operation that dominates training traffic in machine learning workflows:
Ring All-Reduce Algorithm: NCCL organizes GPUs into communication rings, where each GPU sends data to its neighbor. For 1,024 GPUs, this creates multiple overlapping rings to maximize bandwidth utilization. The algorithm requires exactly 2*(N-1)/N communication steps, meaning our 1,024 GPU system needs 2,046 steps to complete synchronization this is fundamental to how distributed deep learning systems scale.
Bandwidth Requirements: Each step transfers approximately 1/N of the total gradient data. For our 70B parameter model with FP16 gradients (280 GB total), each step moves roughly 280 MB between adjacent GPUs. With modern 800 Gbps connections, this should complete in microseconds—but only if the network can handle the synchronized traffic pattern without congestion.
The Incast Problem: NCCL's efficiency depends on predictable, consistent latency between all GPU pairs. The all-reduce pattern creates incast scenarios where multiple GPUs simultaneously send to the same destination, potentially overwhelming switch buffers and creating head-of-line blocking that stalls the entire operation.
AMD's ecosystem presents interesting architectural alternatives that impact network requirements. The forthcoming MI350X accelerators with CDNA 4 architecture promise 35x inference performance improvements, but their network integration follows different patterns:
Infinity Fabric Integration: AMD's approach tightly couples CPU and GPU communication through Infinity Fabric, creating different traffic patterns than NVIDIA's discrete GPU model. This integration can reduce network pressure for certain workloads while creating new bottlenecks for others.
RCCL Communication Patterns: AMD's ROCm Communication Collectives Library (RCCL) implements similar algorithms to NCCL but optimizes for AMD's architecture. The subtle differences in how gradients flow through the system can significantly impact network design requirements.
As we look toward 2025 and beyond, several trends will reshape training job anatomy and LLM training workflows:
Ultra Ethernet Standardization: The Ultra Ethernet Consortium's push for standardized, high-performance Ethernet will eliminate many vendor-specific optimizations while improving interoperability. Training jobs will benefit from standardized congestion control and endpoint scheduling.
Next-Generation Architecture Evolution: Both NVIDIA and AMD roadmaps point toward dramatically increased compute density and communication requirements. NVIDIA's progression from Blackwell to Blackwell Ultra and eventual Vera Rubin architectures will continue pushing the boundaries of what's possible in AI acceleration. Each generation increases both the computational capabilities and the inter-GPU communication requirements.
AMD's parallel evolution through CDNA 4 (powering the MI350 series) and the forthcoming CDNA "Next" architecture (MI400 series in 2026) promises similar advances. AMD's 35x inference performance improvements with CDNA 4 will create new communication patterns and bandwidth requirements that networks must accommodate.
These architectural advances aren't just about raw performance they're changing the fundamental characteristics of AI models and training processes. Higher compute density means more communication per rack unit, requiring denser network connectivity. Advanced precision formats (FP4, FP6) reduce communication overhead for some operations while introducing new patterns for others. Network architectures must evolve to support these changing requirements while maintaining the flexibility to adapt to future innovations.
Edge-Cloud Hybrid Training: Emerging hybrid training models will combine edge data collection with cloud-scale computation, requiring networks that can seamlessly bridge ultra-low-latency edge requirements with high-bandwidth cloud connectivity. This represents a new paradigm where training datasets remain distributed while model parameters are synchronized across hybrid infrastructure.
Understanding training job anatomy translates into specific network design requirements:
Buffer Architecture While buffer management is important in AI training networks, the approach differs significantly between switch-scheduled and endpoint-scheduled fabrics. The key insight is that larger buffers aren't automatically better they represent fundamentally different architectural philosophies.
Switch-scheduled fabrics, exemplified by Broadcom's Jericho and Ramon chipsets, use deep buffers to centrally manage traffic flow. These systems can buffer hundreds of milliseconds worth of traffic, allowing the switch to absorb traffic bursts and coordinate complex communication patterns. However, deep buffers introduce significant latency overhead as packets must traverse multiple buffer stages, and the centralized scheduling logic becomes a bottleneck at scale.
Endpoint-scheduled fabrics, built around silicon like Broadcom's Tomahawk 5 series, take a different approach. Rather than relying on massive switch buffers, they use smaller, more efficiently managed buffers combined with intelligent endpoint coordination. The endpoints themselves typically SmartNICs or DPUs connected to each GPU implement sophisticated backpressure and flow control mechanisms that prevent congestion from occurring in the first place.
This architectural difference explains why the industry is gravitating toward endpoint-scheduled solutions. NVIDIA has been particularly vocal about the superiority of endpoint scheduling, and Broadcom has seen much greater traction with their Tomahawk-based endpoint-scheduled solutions than with switch-scheduled alternatives. Marvell's engineers consistently advocate for endpoint-scheduled approaches, and the company hasn't pursued switch-scheduled chipsets for AI applications.
The Ultra Ethernet standard reinforces this trend by providing standardized APIs for endpoint-based congestion control and flow management. This allows AI training software to coordinate directly with network endpoints, implementing application-aware traffic management that switch-based solutions simply cannot match.
Congestion Management End-to-end congestion control mechanisms become critical for maintaining consistent all-reduce performance. Switch-based solutions like Priority Flow Control often create more problems than they solve.
Topology Design Rail-optimized topologies that provide multiple parallel paths between any two GPUs enable NCCL to route around congestion and maintain consistent performance even as systems scale to thousands of GPUs.
The anatomy of a training job reveals a fundamental truth: the network doesn't just connect your GPUs it determines whether they fulfill their potential or waste it. Every millisecond of additional latency in collective operations multiplies across millions of iterations. Every dropped packet triggers exponential backoff algorithms that cascade through the entire system.
Whether you're building infrastructure for the next trillion-parameter frontier model or optimizing edge AI for real-time industrial control, understanding where training jobs spend their time is the foundation for network architecture decisions that will determine your competitive advantage.
The race to artificial general intelligence won't be won by the organization with the most GPUs it will be won by those who best understand how to orchestrate them. And that orchestration happens entirely in the network.
As AI training scales from today's frontier models to tomorrow's even more ambitious systems, the organizations that master the anatomy of training jobs will find themselves with an insurmountable advantage: their infrastructure will be ready for whatever comes next, while their competitors will still be wondering why their expensive GPUs spend so much time waiting.
In our next article, we'll explore how NCCL and RCCL communication primitives translate into specific network requirements, diving deep into the technical implementation details that determine whether your multi-billion dollar AI infrastructure delivers breakthrough results or expensive disappointment.
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