Microsoft's next-generation Maia AI chips are facing at least six months of delays, pushing mass production from 2025 to 2026.
Once Code Named Braga chips enter production, the performance of Nvidia's Blackwell Chip, released later last year, is expected to be due to the report.
Microsoft wanted to use Braga chips in data centers this year, the report said, adding that its design, staffing constraints and unexpected changes to high sales have contributed to the delays.
Microsoft did not immediately respond to Reuters' request for comment.
Microsoft, like its large-scale high-tech peers, is focused on developing custom processors for artificial intelligence operations and general-purpose applications, a move that will help reduce the tech giant's reliance on expensive NVIDIA chips.
Cloud Rivals Amazon and Alphabet's Google raced to develop chips in-house, customized to specific needs, with the aim of improving performance and reducing costs.
Microsoft introduced Maia Chip in November 2023, but has been delaying coworkers ramping up to scale.
Meanwhile, Google has achieved success with a custom AI chip called tensor processing units, and in April unveiled the seventh generation AI chip designed to speed up the performance of AI applications.
In December, Amazon announced the next-generation AI chip train 3, scheduled to be released later this year.
©Thomson Reuters 2025
