AMD on Monday announced its new artificial intelligence chips for everything from cutting-edge data centres to advanced laptops, ramping up its challenge to the runaway market leader Nvidia.

Demand has exploded in the past two years for the specialised processors that help develop, train and run AI applications such as ChatGPT.

Despite Nvidia's dominant position in the market, AMD has emerged as one of its most serious competitors and CEO Lisa Su said the firm's next-generation processors will rival the offerings from rivals such as Nvidia.

"AI is our number one priority, and we're at the beginning of an incredibly exciting time for the industry as AI transforms virtually every business, improves our quality of life and reshapes every part of the computing market," Su said during a keynote speech at Computex, Taiwan's premier tech expo.

She also announced that AMD will follow an annual update cycle for its advanced accelerators, and the latest -- the Instinct MI325X -- is planned for release later this year.

That followed Nvidia's CEO Jensen Huang sharing a similar annual release outline on Sunday for its top products.

Hailing partnerships with some of the world's biggest laptop companies, Su brought out leaders from Microsoft, HP, Lenovo and Asus -- who touted the incorporation of AMD's Ryzen processors for their AI-powered computers.

Microsoft has been one of the leaders among Big Tech firms on AI, investing billions in ChatGPT maker OpenAI and also rapidly integrating AI features into its products.

Earlier this month, it unveiled its Copilot+ computers -- so-called "AI PCs" that will run the Windows operating system with AI built in.

Microsoft CEO Satya Nadella said Monday that AMD's Ryzen processors would feature in these machines.

"We are in the midst of a massive AI platform shift, with the promise to transform how we live and work," Nadella said in a video message during Su's speech.

"That's why our deep partnership with AMD, which has spanned multiple computing platforms, from the PC to custom silicon for Xbox, and now to AI, is so important to us."

Su is just one of several chip industry heavyweights at Computex this year.

Qualcomm CEO Cristiano Amon, Intel boss Pat Gelsinger and Rene Haas of British chip design giant Arm are also scheduled to deliver keynote speeches.

Tech firms are betting big on AI, and Taiwanese manufacturers are central to their plans -- the island produces the bulk of the world's most advanced semiconductors, including those needed for the most powerful AI applications and research.