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


OpenAI Expands Enterprise AI Strategy With Major Hiring Push Ahead of New Business Offering
TSMC Eyes 3nm Chip Production in Japan with $17 Billion Kumamoto Investment
Nvidia Confirms Major OpenAI Investment Amid AI Funding Race
Nvidia, ByteDance, and the U.S.-China AI Chip Standoff Over H200 Exports
SpaceX Seeks FCC Approval for Massive Solar-Powered Satellite Network to Support AI Data Centers
Tencent Shares Slide After WeChat Restricts YuanBao AI Promotional Links
Toyota’s Surprise CEO Change Signals Strategic Shift Amid Global Auto Turmoil
Australian Scandium Project Backed by Richard Friedland Poised to Support U.S. Critical Minerals Stockpile
AMD Shares Slide Despite Earnings Beat as Cautious Revenue Outlook Weighs on Stock
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine
SoftBank Shares Slide After Arm Earnings Miss Fuels Tech Stock Sell-Off
Elon Musk’s Empire: SpaceX, Tesla, and xAI Merger Talks Spark Investor Debate
Anthropic Eyes $350 Billion Valuation as AI Funding and Share Sale Accelerate
Baidu Approves $5 Billion Share Buyback and Plans First-Ever Dividend in 2026
Oracle Plans $45–$50 Billion Funding Push in 2026 to Expand Cloud and AI Infrastructure
Palantir Stock Jumps After Strong Q4 Earnings Beat and Upbeat 2026 Revenue Forecast 



