Core Viewpoint - Microsoft is adjusting its internal AI chip development strategy to focus on less aggressive designs by 2028, aiming to overcome delays in development while maintaining competitiveness against Nvidia [2][4]. Group 1: Development Delays and Strategic Adjustments - Microsoft has faced challenges in developing its second and third-generation AI chips, leading to a strategic shift towards more pragmatic and iterative designs [2][4]. - The Maia 200 chip's release has been postponed from 2025 to 2026, while the new Maia 280 chip is expected to provide a 20% to 30% performance advantage per watt over Nvidia's 2027 chip [2][4][5]. - The company acknowledges that designing a new high-performance chip from scratch each year is not feasible, prompting a reduction in design complexity and an extension of development timelines [2][5]. Group 2: Chip Development Timeline - The Braga chip's design was completed six months late, raising concerns about the competitiveness of future chips against Nvidia [5]. - A new intermediate chip, Maia 280, is being considered for release in 2027, which will be based on the Braga design and consist of multiple Braga chips working together [5][6]. - The Maia 400 chip, initially known as Braga-R, is now expected to enter mass production in 2028, featuring advanced integration technologies for improved performance [6][7]. Group 3: Impact on Partners - The revised roadmap has negatively impacted Marvell, a chip design company involved in the Braga-R project, leading to a decline in its stock price due to project delays and economic factors [9]. - Not all of Microsoft's chip projects are facing issues; CPU projects, which are less complex than AI chips, are progressing well [9][10]. - Microsoft's Cobalt CPU chip, released in 2024, is already generating revenue and is being used internally and by Azure cloud customers [10].

Core Insights - Microsoft is adjusting its ambitious AI chip development strategy due to delays, shifting towards a more pragmatic and iterative design approach to remain competitive with Nvidia in the coming years [1][4] - The release of the Maia 200 chip has been postponed from 2025 to 2026, with plans to launch less aggressive designs by 2028 [1][4] - Microsoft aims to reduce its dependency on Nvidia's chip procurement, which costs the company billions annually [1] Group 1: Strategic Adjustments - The delays in the development of Microsoft's second and third-generation AI chips have prompted a strategic overhaul [4] - The Braga chip's design was completed six months later than planned, raising concerns about the competitiveness of future chips against Nvidia [4] - Microsoft is considering an intermediate chip, Maia 280, to be released in 2027, which will be based on the Braga design [4][5] Group 2: Future Chip Plans - The chip initially known as Braga-R will now be called Maia 400, expected to enter mass production in 2028 with advanced integration technology [5] - The release of the third-generation AI chip, Clea, has been delayed until after 2028, with uncertain prospects [5] Group 3: Impact on Partners - The revised roadmap negatively affects Marvell, which was involved in the Braga-R project, leading to a decline in its stock price [6] - Marvell had anticipated earlier revenue from Microsoft, but delays and economic factors have impacted its performance [6] Group 4: Other Projects - Not all of Microsoft's chip projects are facing issues; the CPU project, Cobalt, is progressing well and has already generated revenue [8] - The next generation of Cobalt, Kingsgate, has completed its design and will utilize chiplet architecture and faster memory [8]