Microsoft Ups AI Chip Production Amid Competition from Amazon and Google

Microsoft is gearing up to significantly boost production of its next-generation AI chips, according to a report by The Information. The company has been in talks with Taiwan Semiconductor Manufacturing (TSMC) to secure capacity for over 300,000 Maia 300 chips for delivery in 2027. This move comes as Microsoft prepares to unveil the Maia 300 chip this fall.

The Maia line is widely seen as less mature than its rivals, which are already being used to power AI services by cloud-computing giants Amazon and Google. Anthropic PBC has deals with these companies to use millions of their chips, with 1 million Amazon Trainium chips and Google Tensor Processing Unit accelerators.

Microsoft aims to produce gigawatts' worth of Maia chips in the future, according to a company manager. The high costs and short supply of Nvidia chips have fueled a scramble for alternative computing power sources.