Microsoft's in-house AI chip faces delay until 2026: Report

Microsoft's Maia AI chip, known internally as 'Braga', is experiencing a significant setback, with mass production now postponed until 2026, according to a report from The Information. This delay extends the timeline by at least six months from the original target of 2025, as confirmed by three sources familiar with the situation. The report indicates that the Braga chip may not meet expectations when it finally enters the market, as it is anticipated to lag behind Nvidia’s Blackwell series, which launched in late 2024. Microsoft had initially planned to roll out Braga within its data centers this year, but unforeseen design modifications, along with challenges related to workforce stability and high employee turnover, have hindered progress. In a bid to lessen their reliance on Nvidia's increasingly costly AI chips, Microsoft and other tech giants are investing heavily in custom silicon. This initiative to develop proprietary processors aims to enhance both cost efficiency and performance in cloud infrastructure. Competitors such as Amazon and Google are also advancing in this arena, with Google recently revealing its seventh-generation AI chip, while Amazon plans to introduce its next-generation Trainium3 chip later this year. First unveiled in November 2023, Microsoft’s Maia chip is now facing challenges in scaling production to keep pace with its competitors, who are rapidly advancing in the development of tailored chips for their cloud services.