If FUD Zilla's intel is right AMD is working on a 65nm R650 GPU. This is basically a shrunken version of the Radeon HD 2900 XT with more texture power. It will also hopefully run a bit cooler and have higher clockspeeds.
ATI aims for higher clocks, closer to 1,000MHz and obviously it will improve the usage of the available bandwidth.
As the chip is going to be shrunk, you can expect significantly less energy consumption. All together this will be what R600 was suppose to be, a Geforce 8800 GTX / Ultra killer, but the problem is that Nvidia will also have something new by the time ATI finishes R650.
We are looking at a August to September launch for R650, but can we really trust ATI in its plans. We hope for MAD.ATI (DAAMIT)'s sake that they can pull this one off. And in case you haven't heard it before, R650 will be commercially known as Radeon HD 2950 XTX and HD 2950XT.