The company said the AI250, expected in 2027, would be 10 times more effective in memory bandwidth than current products on the market while consuming less power.

Nvidia, the poster child for the generative AI boom, currently dominates the AI chip market, driven by its H100 and newer H200 GPU accelerators used in training and running AI models in massive purpose-built data centres.

AMD, the second-largest player, has been gaining ground, positioning itself as a challenger to Nvidia’s dominance.

Both companies have recently entered into arrangements with OpenAI, the creator of ChatGPT, as the industry seeks to ramp up the massive infrastructure needed to support the AI frenzy.

This has raised some fears that Wall Street could be in the throes of an AI stock bubble reminiscent of the internet boom and crash experienced in the late 1990s and 2000.

Still, companies are largely rewarded for their connection to the AI bonanza. AMD’s shares rose 35% on the day of its announcement with OpenAI, the world’s most valuable private company, worth $500 billion.

-Agence France-Presse