(Bloomberg) -- Cerebras Systems Inc., a startup that looks to challenge Nvidia Corp. in artificial intelligence computing, unveiled a new chip that it says will trounce rivals at running AI models and generating responses.

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The Silicon Valley-based company is offering the chip as part of computing systems that data center operators can buy and run themselves. It also will be available as a pay-as-you-go service run by Cerebras.

The startup, which has filed a confidential plan to sell shares in an initial public offering, is trying to carve out a piece of a burgeoning market. The largest companies in technology are pouring tens of billions of dollars into AI computing. The biggest beneficiary so far has been Nvidia, whose graphics processing units, or GPUs, are an essential part of this new infrastructure.

But Cerebras founder and Chief Executive Officer Andrew Feldman said his computers will upend the industry by making AI systems more responsive — a transition he compares to the shift to high-speed internet.

“Up until today, we were in the dial-up era,” he said at an event in San Francisco ahead of the announcement of new products and services. “No number of GPUs can be cobbled together to achieve this.”

Cerebras’ approach relies on giant chips made from a single disk of silicon. Other processors — even the biggest and most powerful — are much smaller, and many of them can be made from one silicon wafer.

That novel technique allows chips to be more capable than their conventional counterparts, Cerebras says. But the company has to supply computers designed to house the outsized chips, since conventional hardware can’t accommodate them.

According to Feldman, a key advantage comes from the way his products use memory. The capability is built right into Cerebras’ chips, unlike GPUs and other processors, which need to connect to memory through interfaces to access information.

To be sure, Nvidia has a huge lead in AI infrastructure, and other rivals — such as Intel Corp. — have struggled to compete. Cerebras will have to make a case to the computing industry that it can reliably produce and deploy its technology.

Cerebras is setting up data centers of its own to provide AI computing as a service. It’s also trying to sell its chips to cloud providers, a group that includes Microsoft Corp. and Amazon.com Inc. The startup has engaged with those companies, but doesn’t count them as customers yet.

When asked how much market share Feldman could take from Nvidia, he said, “Enough to make them angry.”

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