Microsoft’s ambitious plans to bolster its artificial intelligence infrastructure have hit a snag, with the production of its next-generation Maia AI chip, code-named “Braga,” now delayed until 2026. Initially slated for mass production in 2025, the chip’s launch has been pushed back by at least six months, according to a report by The Information, which cites three people involved in the project.
The delay reportedly stems from a combination of unexpected design changes, staffing shortages, and high employee turnover factors that have complicated the chip’s development and testing. Microsoft had intended to deploy Braga in its data centers as early as this year to strengthen its cloud-based AI services and reduce dependency on third-party chipmakers, particularly Nvidia.
However, Braga’s anticipated performance is reportedly falling short of expectations. Sources indicate that even once it reaches production, the chip will lag significantly behind Nvidia’s Blackwell chip, which was launched in late 2024 and has already set a new benchmark for AI processing capabilities. Nvidia remains the dominant player in the AI chip market, powering a majority of the workloads behind AI models like OpenAI’s ChatGPT.
The Maia/Braga chip project is central to Microsoft’s broader strategy of developing custom silicon to enhance performance and efficiency in AI workloads. It’s part of a growing trend among tech giants including Google, Amazon, and Meta who are increasingly investing in building their own chips to gain more control over their computing infrastructure.
Despite the setback, Microsoft is not abandoning the project. The company continues to test early versions of the chip and refine its capabilities, aiming to create a competitive alternative in the increasingly crowded AI hardware space. The delay, however, may impact Microsoft’s ability to scale its AI services at the pace of rivals who have already secured advanced chips.
The postponement underscores the complex and resource-intensive nature of developing next-generation AI chips, especially amid a global race to lead in artificial intelligence infrastructure. As the AI arms race accelerates, the success of Braga whenever it launches will be a critical factor in Microsoft’s future competitiveness.
