Microsoft's next-generation Maia AI processor will be delayed by at least six months, with mass manufacturing set for 2026 rather than 2025, according to The Information, citing three sources.
When the chip, codenamed Braga, gets into production, it is predicted to fall well short of the performance of Nvidia's Blackwell processor, which was introduced late last year, according to the report.
Microsoft had wanted to utilize the Braga chip in its data centers this year, according to the article, but unforeseen design modifications, manpower restrictions, and high turnover all contributed to the delay.
Microsoft did not immediately react to Reuters' request for comment.
Microsoft, like its Big Tech colleagues, has prioritized the development of proprietary processors for artificial intelligence operations and general-purpose applications, a move that would help lessen the company's reliance on expensive Nvidia chips.
Cloud competitors Amazon and Alphabet's Google have both rushed to create processors in-house, tailored to their individual requirements in order to improve performance and save prices.
Microsoft debuted the Maia chip in November 2023, but it has fallen behind its competitors in terms of scaling.
Meanwhile, Google has experienced success with its proprietary AI processors, known as Tensor Processing Units, and in April announced its seventh-generation AI chip, aimed to improve the performance of AI applications.
In December, Amazon also revealed Trainium3, their next-generation AI processor, which will be available late this year.