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


Nvidia’s $100 Billion OpenAI Investment Faces Internal Doubts, Report Says
OpenAI Reportedly Eyes Late-2026 IPO Amid Rising Competition and Massive Funding Needs
Apple Faces Margin Pressure as Memory Chip Prices Surge Amid AI Boom
AMD Shares Slide Despite Earnings Beat as Cautious Revenue Outlook Weighs on Stock
SpaceX Seeks FCC Approval for Massive Solar-Powered Satellite Network to Support AI Data Centers
Elon Musk’s Empire: SpaceX, Tesla, and xAI Merger Talks Spark Investor Debate
Apple Earnings Beat Expectations as iPhone Sales Surge to Four-Year High
Nvidia Nears $20 Billion OpenAI Investment as AI Funding Race Intensifies
Nintendo Shares Slide After Earnings Miss Raises Switch 2 Margin Concerns
Meta Stock Surges After Q4 2025 Earnings Beat and Strong Q1 2026 Revenue Outlook Despite Higher Capex
Samsung Electronics Posts Record Q4 2025 Profit as AI Chip Demand Soars
NRW Holdings Shares Surge After Securing Major Rio Tinto Contract and New Project Wins
Pentagon and Anthropic Clash Over AI Safeguards in National Security Use
Boeing Secures New Labor Contract With Former Spirit AeroSystems Employees
Oracle Plans $45–$50 Billion Funding Push in 2026 to Expand Cloud and AI Infrastructure
Panama Supreme Court Voids Hong Kong Firm’s Panama Canal Port Contracts Over Constitutional Violations 



