Microsoft’s big push to create its own custom AI chip has hit a major snag. The company’s next-generation Maia AI chip is now facing a delay of at least six months, pushing its mass production into 2026, according to a report from The Information.
This is a significant setback for Microsoft, which, like other tech giants, is investing substantial resources in developing its processors. The goal is to reduce its heavy reliance on expensive chips from the current market leader, Nvidia. However, the report states that even when Microsoft’s new chip, code-named Braga, is finally released, its performance is expected to be significantly behind Nvidia’s powerful Blackwell chip, which was introduced late last year.
Microsoft had originally hoped to be using its chips in its massive data centers this year. The delay is reportedly due to a combination of issues, including unexpected design changes, insufficient staff, and high employee turnover on the project.
This delay puts Microsoft at a disadvantage compared to its main cloud rivals, Amazon and Google, which have both successfully developed and deployed their custom chips for years.
Google is already on its seventh-generation AI chip, and Amazon is set to release its next-generation chip later this year. By creating chips in-house, these companies can tailor them to their specific needs, thereby enhancing performance and significantly reducing costs.
Microsoft first introduced its Maia chip in November 2023, but it has struggled to bring it to market for large-scale use.
