Microsoft AI Chip Delayed

Microsoft AI Chip Delayed

29 June 2025

Microsoft's next-generation Maia AI chip, codenamed Braga, faces production delays, pushing its mass production to 2026. This setback stems from design modifications, staffing shortages, and employee turnover. The delay impacts Microsoft's strategy to reduce reliance on Nvidia's GPUs and strengthen its AI infrastructure.

When released, the Braga chip's performance is expected to fall short of Nvidia's Blackwell chip. Microsoft had planned to integrate the Braga chip into its data centres this year. The Maia 100 chip, launched in 2023, remains unused in AI services due to its focus on image processing, which is outdated for current AI models.

This delay gives Nvidia more time to solidify its market dominance in the AI chip market. Nvidia currently holds a significant market share, with its GPUs becoming industry standards in data centres and AI research. Competitors like Amazon and Google are also developing custom AI chips.

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Published on 29 June 2025
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