Microsoft’s In-House AI Chip Delayed by Six Months: Now Anticipated for 2026, Yet Still Lags Behind Nvidia’s Blackwell

A new report reveals that Microsoft’s first in-house AI chip, code-named Braga, has been delayed by six months and is now set to launch in 2026, falling significantly short of Nvidia’s Blackwell chip performance. Internal challenges, such as unexpected design changes, staffing issues, and high turnover, have exacerbated this delay. Initially intended for deployment in Microsoft’s data centers this year, the chip’s development has been slow since its inception in 2019. It is primarily geared towards image processing rather than generative AI, limiting its relevance for current AI needs. Microsoft is also developing two additional chips, Braga-R and Clea, targeting subsequent years for release. However, with the current delays, meeting these ambitious timelines appears increasingly doubtful. Nvidia remains unbothered by Microsoft’s endeavors, questioning the value of rival chip projects that don’t surpass what is commercially available. Overall, Microsoft faces a prolonged period of competitive disadvantage in the AI chip market.

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