Meta, Oracle to deploy NVIDIA Spectrum-X Ethernet for AI networks

Published 13/10/2025, 16:06
© Reuters.

SAN JOSE, Calif. - Meta and Oracle will implement NVIDIA Spectrum-X Ethernet networking switches in their data centers to enhance AI infrastructure capabilities, according to a press release issued Monday by NVIDIA. The announcement comes from NVIDIA, a dominant force in the semiconductor industry with a market capitalization of $4.54 trillion and impressive revenue growth of 71.55% over the last twelve months. According to InvestingPro data, the company maintains excellent financial health with strong profitability metrics.

Meta plans to integrate Spectrum Ethernet switches into its Facebook Open Switching System (FBOSS) platform, which manages network switches at scale. This integration aims to improve AI training efficiency and reduce time to insights.

"Meta’s next-generation AI infrastructure requires open and efficient networking at a scale the industry has never seen before," said Gaya Nagarajan, vice president of networking engineering at Meta.

Oracle will build AI supercomputers using NVIDIA’s Vera Rubin architecture interconnected by Spectrum-X Ethernet. Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure, stated that adopting Spectrum-X will allow the company to "interconnect millions of GPUs with breakthrough efficiency."

The Spectrum-X Ethernet platform is designed specifically for AI workloads involving trillion-parameter models. According to the company, it has demonstrated 95% data throughput efficiency in large-scale AI deployments, compared to approximately 60% for standard Ethernet solutions.

NVIDIA (NASDAQ:NVDA) describes the technology as enabling "scale-across capabilities" that can link data centers across geographic locations into larger AI computing systems.

The platform includes advanced features such as congestion control, adaptive routing, and AI-driven telemetry to ensure efficiency for AI training and inference clusters.

The announcement comes as major technology companies continue to expand their AI infrastructure to support increasingly complex models and applications. NVIDIA’s strong market position is reflected in its robust return on assets of 76.65% and solid cash flows. InvestingPro analysis reveals 20 key investment tips for NVIDIA, with analysts maintaining positive forecasts for the company’s sales growth. For detailed insights and comprehensive analysis, investors can access NVIDIA’s Pro Research Report, part of the extensive coverage of 1,400+ US equities available on InvestingPro.

In other recent news, Nvidia has been the focus of significant developments. Mizuho has increased its price target for Nvidia to $225, maintaining an Outperform rating, citing confidence in the company’s leadership in the artificial intelligence sector. Similarly, Cantor Fitzgerald has raised its price target to $300, following discussions with Nvidia executives about the company’s ongoing AI infrastructure expansion. In a separate development, Hoth Therapeutics has expanded its AI initiative by securing an NVIDIA AI Enterprise subscription license, which will enhance its pharmaceutical research capabilities. Additionally, PubMatic announced performance improvements from its collaboration with Nvidia, leading to faster ad processing and reduced latency. Meanwhile, Nvidia supplier Megaspeed is under investigation by the U.S. Commerce Department for potential violations related to export restrictions to China. These investigations are centered around Megaspeed’s alleged assistance to Chinese firms in bypassing these restrictions. These developments underscore Nvidia’s active role in various sectors and the ongoing scrutiny in its supply chain.

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