Microsoft, at its Ignite developer conference in Seattle, announced the development of two custom-designed computing chips to bolster its artificial intelligence (AI) capabilities. With the rising costs associated with delivering AI services, Microsoft is bringing key technologies in-house.
Maia Chip for AI Computing
As part of its Azure cloud computing service, Microsoft introduced the Maia chip aimed at optimizing AI computing tasks, as per Reuters. Maia will play a crucial role in powering Microsoft's own subscription software offerings and its $30-a-month "Copilot" service. Nikkei Asia noted that this chip, designed to operate large language models, is a result of Microsoft's collaboration with ChatGPT creator OpenAI.
Major tech companies, including Microsoft and Alphabet, are grappling with soaring costs of delivering AI services. To address this, Microsoft plans to route most of its AI-driven efforts through a common set of foundational AI models. The Maia chip has been precisely optimized to support this initiative and enable the delivery of AI services through the cloud.
Cobalt Chip for CPU Power
Microsoft's second chip, Cobalt, was introduced as a central processing unit (CPU) developed using Arm Holdings technology. While it serves as a cost-saving measure for internal operations, it also poses a challenge to Microsoft's chief cloud rival, Amazon Web Services.
Cobalt has already been tested for powering Microsoft's business messaging tool, Teams, and Microsoft aims to offer direct access to Cobalt to compete with Amazon Web Services' "Graviton" series of in-house chips.
Advanced Manufacturing Technology
Both Maia and Cobalt chips were manufactured using cutting-edge 5-nanometer technology from Taiwan Semiconductor Manufacturing Co. This ensures optimal performance and efficiency for Microsoft's AI-driven solutions. Additionally, the Maia chip can be connected using standard Ethernet network cabling, reducing costs compared to using custom Nvidia networking technology.
Microsoft's investment in custom computing chips lays the foundation for the development of innovative AI services. By leveraging the power of proprietary chips, Microsoft aims to offer high-performance AI solutions until personal computers and phones can handle them independently. This strategic move positions Microsoft in a competitive stance and opens up new possibilities for AI-driven advancements.
Photo: Matthew Manuel/Unsplash


SoftBank Shares Slide as Oracle’s AI Spending Plans Fuel Market Jitters
China Adds Domestic AI Chips to Government Procurement List as U.S. Considers Easing Nvidia Export Curbs
Gulf Sovereign Funds Unite in Paramount–Skydance Bid for Warner Bros Discovery
U.S. Greenlights Nvidia H200 Chip Exports to China With 25% Fee
SpaceX Insider Share Sale Values Company Near $800 Billion Amid IPO Speculation
Australia’s Under-16 Social Media Ban Sparks Global Debate and Early Challenges
EssilorLuxottica Bets on AI-Powered Smart Glasses as Competition Intensifies
GameStop Misses Q3 Revenue Estimates as Digital Shift Pressures Growth
IBM Nears $11 Billion Deal to Acquire Confluent in Major AI and Data Push
ANZ Faces Legal Battle as Former CEO Shayne Elliott Sues Over A$13.5 Million Bonus Dispute
SK Hynix Considers U.S. ADR Listing to Boost Shareholder Value Amid Rising AI Chip Demand
Rio Tinto Signs Interim Agreement With Yinhawangka Aboriginal Group Over Pilbara Mining Operations
Air Force One Delivery Delayed to 2028 as Boeing Faces Rising Costs
Mizuho Raises Broadcom Price Target to $450 on Surging AI Chip Demand
U.S.-EU Tensions Rise After $140 Million Fine on Elon Musk’s X Platform
SpaceX Reportedly Preparing Record-Breaking IPO Targeting $1.5 Trillion Valuation
Apple App Store Injunction Largely Upheld as Appeals Court Rules on Epic Games Case 



