Microsoft’s next-gen AI chip may be facing production delay

Microsoft

’s plans for its next-generation artificial intelligence (AI) chip, code-named Maia, are reportedly facing a significant setback. According to The Information, citing sources involved in the effort, the chip's mass production has been delayed by at least six months, now pushing its rollout into 2026 instead of the anticipated 2025.When “Braga,” as the chip is also known, eventually enters production, its performance is expected to fall considerably short of Nvidia's Blackwell chip, which was released late last year, the report said.Microsoft had initially aimed to integrate the

Maia chip

into its data centers as early as this year. However, design changes, staffing constraints and high employee turnover are cited as key factors contributing to the delay.

The race for custom AI processors hots up

Like its major tech counterparts, Microsoft has been heavily investing in developing custom processors for AI operations and general-purpose applications. This move is intended to lessen the tech giant's dependence on expensive chips from Nvidia, which currently dominates the

AI hardware market

.

Cloud rivals Amazon and Alphabet’s Google have also been pursuing in-house chip development, tailoring processors to their specific needs with the dual goals of boosting performance and cutting costs. Microsoft first introduced the Maia chip in November 2023 but has since lagged behind its peers in scaling up its production.In contrast, Google has seen success with its custom AI chips, known as Tensor Processing Units (TPUs). In April, Google unveiled its seventh-generation AI chip, designed to accelerate the performance of AI applications. Similarly, Amazon in December revealed its next-generation AI chip, Trainium 3, which is slated for release later this year.Meanwhile, Nvidia is also expected to announce its next-generation chips later this year. One of the biggest competitors of Nvidia, AMD has also announced new chips that are claimed to offer better performance than Nvidia’s Blackwell chips.