GPUs are highly parallel by design, so my guess is there will be little to no latency issues. It can cut costs by using a single chiplet design and producing in very large quantities, and joining variable number of them for each tier of gpu. Individual chiplets can be switched on or off based on a smart distribution of tasks to save even more power. And it can scale from entry level products (like an RX 8400) to something not even Nvidia can reach with a single chip. And, up next (my guess) is that raytracing will have its own chiplet someday, with the same benefits and even nore configuration options.
Downside: it has to work, because they are way behind the race by now.