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Microsoft Slows Down on AI Chips: Braga to Arrive in 2026
Microsoft's 'Braga' AI chip has been delayed to 2026 due to design complexities and high turnover rates. Expectations are that it will underperform compared to NVIDIA's upcoming Blackwell GPU. This delay highlights Microsoft's struggle to keep up in the competitive AI chip market.
Key points
- Braga is delayed by six months, moving the launch to 2026.
- Design complexities and team turnover (up to 20% loss of key resources) are primary reasons for the delay.
- Braga is expected to underperform compared to NVIDIA's Blackwell, which has advanced architecture.
- Microsoft is behind competitors like Amazon and Google in AI chip development.
- Dependence on NVIDIA for performance impacts Azure negotiation capabilities and operating costs.
- Organizational and technical challenges continue to complicate Microsoft's AI chip strategy.
Why it matters
- Microsoft's reliance on other firms' technology reflects broader industry trends in 2025 regarding AI chip development.
- Competitors like Amazon and Google are advancing faster with proprietary chips, indicating a competitive gap.
- The issues faced in developing Braga could signal wider challenges for tech companies in innovating while maintaining organizational stability.
The delay of Microsoft's Braga chip underscores the complexities of developing competitive AI technology, highlighting the need for robust internal strategies while navigating a volatile external tech landscape.