Microsoft (MSFT, Financial) has postponed the release of its next-generation AI chip, codenamed Braga, from 2025 to 2026, marking at least a six-month delay. The company's stock saw a slight 0.4% dip in pre-market trading. The delay is attributed to development challenges such as design changes, staffing limitations, and high employee turnover.
Reports indicate that when Braga finally enters mass production next year, its performance is expected to lag behind the flagship chips from Nvidia. Originally, Microsoft planned to deploy Braga chips in its data centers this year. The tech giant has been developing its AI chips for several years, aiming to reduce reliance on Nvidia's offerings.
