Amazon unveiled a cutting-edge artificial intelligence chip for its cloud computing platform, intensifying its rivalry with Microsoft in the fiercely competitive AI market.

Amazon Web Services (AWS) Chief Executive Adam Selipsky made the announcement for the new chips, known as Graviton4 and Trainium2. Selipsky clarified that the chips represent the second generation of AI training chips and boasts remarkable improvements in both speed and energy efficiency.

This move by Amazon follows Microsoft's introduction of its own AI chip called Maia. In addition to Microsoft, AWS will also face competition from Google's Tensor Processing Unit (TPU), which has been available to cloud computing customers since 2018.

AWS plans to make the new training chips available next year, as the demand for computing power continues to rise in the development of advanced technologies like large language models. Alongside its own chip innovations, AWS also announced that it will offer Nvidia's latest chips on its cloud service, providing further options to customers.