Arista Networks: Ethernet Becomes a Critical AI Infrastructure. The Target of $750 Million in AI Revenues by 2025 is set!

• Arista Networks sees Ethernet as a critical infrastructure for the AI era and wants to profit from it.
• The goal is to reach $750 million in AI revenues by 2025.

Arista Networks (ANET) is known for its network products, such as routers, switches and EOS operating software, to deliver the data center infrastructure of tomorrow. The figures were good and $1.2 billion is being raised as a share buyback. In the last quarter, sales jumped 16.3% to $1.57 billion. Net income jumped 39% to $1.99 per share.

In the conference call, Arista management stated that it is positioning itself as a pure-play network innovator for the next era, addressing a $60 billion market in data-driven AI networks. Interestingly, Arista says Ethernet is becoming a critical infrastructure for both front-end and back-end AI data centers. "AI applications simply cannot operate in isolation and require seamless communication between the compute nodes, which consist of back-end GPUs and AI accelerators, and the front-end nodes such as the CPUs alongside storage and IPWAN systems." InfiniBand is being replaced. Ethernet at scale will become the de facto network and the First choice for scalable AI training workloads. The company is therefore confident that it will reach its target of $750 million in AI revenue in 2025.

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