Advanced Micro Devices (AMD), the Silicon Valley chipmaker, engineered one of the greatest comebacks in the history of pocket-sized computers in the 2010s. Staring down 25%-staff layoffs and a stock market price of roughly $2 per share, it put boots on the ground and rallied to become Intel’s biggest rival on the semiconductor circuit by the end of the decade, innovating at the frontiers of tech alongside the very best in the world.

Now, it’s aimed at a repeat victory in a new emerging battlefield. On Tuesday, at a showcase in San Francisco, AMD unveiled an artificial intelligence chip that could challenge Nvidia, the industry leader in AI hardware and software.

The spoils of war would be rich. The AI arms race of 2023, which kicked off with the launch of OpenAI’s ChatGPT last November, has spawned a market that could swell to $800 billion over the next decade “as this AI Game of Thrones plays out across the enterprise and consumer tech space,” according to a research note from the investing firm Wedbush.

AMD’s AI chip, the MI300X, is its most sophisticated graphics processing unit yet. It will start shipping in the third quarter of 2023, with mass production ramping up in the fourth quarter, the company said.

It may be getting a formidable ally in its campaign against Nvidia. On Wednesday, an executive for Amazon Web Services (AWS) told Reuters that the cloud computing giant—the largest in the world—may enlist AMD as its supplier, although it has not reached a final decision. Such a contract would give AMD a flagship client that could catapult the company straight into Nvidia’s echelon. It’s the strongest threat yet to the reigning king of the castle.

Nvidia currently holds 80% of the market share for AI chips, and its valuation crossed the prestigious $1 trillion threshold this week—making it only the seventh U.S. company ever to do so, joining the likes of tech titans Alphabet and Apple.

Experts have said they expect MI300X to compete with Nvidia’s Grace Hopper Superchip, and to draw interest from other major clients such as Microsoft, with which it has long partnered for its semiconductor chips that power gadgets like laptops and smartphones.

AI chips, on the other hand, are specialized to excel at tasks such as training large-language models on vast troves of data, requiring deep wells of memory to process billions of calculations at once. It’s a capability that companies have been clamoring for ever since the generative AI boom.

At its unveiling Tuesday, AMD chief executive Lisa Su called MI300X “the world’s most advanced accelerator for generative AI.” And the space of artificial intelligence, she said, will be the company’s “most significant and strategically important long-term growth opportunity.”