Setbacks, staff issues, and redesign woes stall Microsoft’s AI chip plans, giving rivals Amazon and Google a clear lead in the race for custom AI silicon, says reports.
Microsoft’s plans to roll out its next-generation artificial intelligence (AI) chip have been delayed, with production now expected to begin in 2026 instead of the initially targeted 2025, according to a report by The Information.
The chip, internally named Braga, is part of Microsoft’s broader push to design custom silicon for AI applications. The reported delay is attributed to unexpected design revisions, workforce limitations, and high turnover within the team working on the project.
Braga, which falls under the Maia chip series, was introduced by Microsoft in late 2023. Despite initial ambitions to deploy the chip in its data centres this year, internal challenges have pushed the timeline back.
Insiders suggest the chip is unlikely to match the performance of NVIDIA’s recently released Blackwell processors, which currently dominate the high-performance AI hardware market.
Custom chip development has become a key focus for major cloud providers aiming to cut costs and reduce reliance on third-party manufacturers. Microsoft’s competitors, including Google and Amazon, have made notable progress with their in-house processors.
Google, for example, unveiled its seventh-generation AI chip earlier this year, while Amazon is preparing to release its Trainium3 chip before the end of 2025.
According to reports, Microsoft’s delay may impact its broader AI infrastructure strategy, particularly as demand for AI computing continues to surge across industries. Although, the tech giant has not issued an official response to the reported production setback.
