# The battle for AI's fastest connections inside the rack

> NVIDIA dominates in-rack networking for AI, but hyperscalers and new standards are challenging its grip on the technology.
- Title: The battle for AI's fastest connections inside the rack
- Summary: NVIDIA dominates in-rack networking for AI, but hyperscalers and new standards are challenging its grip on the technology. In-rack networking speed…
- Keywords: nvidia, scale-up networking, in-rack networking, nvlink, nvswitch, esun, ualink, broadcom, aws, microsoft, google, meta
- Source: Futuriom — https://futuriom.com/articles/news/top-trends-in-networking-for-ai-inside-the-rack/2026/08
- Read time: 1 min
- Topics: nvidia, scale-up networking, in-rack networking, nvlink, nvswitch, esun, ualink, broadcom, aws, microsoft, google, meta
## Scale-up networking drives AI ROI
Connections among GPUs, CPUs, storage, and switches within racks must be extremely fast and error-free. Without this, GPUs can't work as a single unit, causing costly AI equipment to fail.
## NVIDIA controls the rack today
NVIDIA dominates in-rack networking via NVLink and NVSwitch, technologies that create a highly scalable mesh of GPU connectivity that improves with each new generation.
## Hyperscalers build their own alternatives
AWS, Microsoft, Google, and Meta have created custom interconnect technologies to work with their proprietary chips, challenging NVIDIA's dominance.
## Two industry standards are emerging
Ultra Accelerator Link and Ethernet for Scale-Up Networking are gaining momentum as alternatives to NVIDIA's proprietary technologies.
## ESUN leads the standards race
NVIDIA's NVLink controls over 90% of in-rack networking, but ESUN, promoted heavily by Broadcom, has emerged as the near-term specification for alternatives.

> NVIDIA's NVLink and NVSwitch connectivity control over 90% of in-rack networking
## Optical networking is coming soon
All leading hyperscalers and infrastructure vendors plan a gradual but definite shift to optical networking within the next few years.
## Co-packaged optics will be standard
Nearly all companies involved in scale-up networking, from component suppliers to switch makers, plan to eventually standardize on CPO technology.
## Key takeaway

In-rack networking speed determines AI project ROI, and while NVIDIA controls over 90% today, new standards like ESUN are emerging as alternatives.