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260 Microsoft’s AI Chip Effort Falls Behind

The Information
Wayne Ma @ The Information 3 place · 06/27/2025 09:00 EDT

Microsoft’s AI Chip Effort Falls Behind

Microsoft has spent years designing its own artificial intelligence chips, in part to reduce its dependence on Nvidia. It isn’t going so well.

The software giant, which Nvidia employees say was its largest customer by revenue last year, is taking much longer than expected to design its latest-generation AI chips, raising the possibility that the new chips will be even less competitive with Nvidia’s by the time they go into mass production. Microsoft’s problems highlight how the rapid pace of AI development

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