Microsoft Plans Production Boost for AI Chips, Report Says

Microsoft Corp. plans to significantly increase production of its next-generation AI chips, the Information reported, citing people familiar with the situation. The company is in discussions with Taiwan Semiconductor Manufacturing Co. to secure manufacturing capacity for over 300,000 chips for delivery in 2027, and will unveil its new Maia 300 chip this fall. Microsoft shares rose about 1.3% in New York.

Bloomberg -- Microsoft Corp. is planning to "significantly" increase production of its next-generation AI chips, the Information reported. Most Read from Bloomberg - China Unleashes $28 Trillion Capital Markets to Challenge US in AI https://www.bloomberg.com/news/features/2026-08-09/china-bets-on-ai-stocks-as-it-races-against-us-for-chip-tech-dominance?utm campaign=bn&utm medium=distro&utm source=yahooUS - Iran Shakes Up Security Team After Saying Oman Deal 'Very Close' https://www.bloomberg.com/news/articles/2026-08-09/wait-for-hormuz-deal-stretches-on-as-iran-says-terms-must-be-met?utm campaign=bn&utm medium=distro&utm source=yahooUS - Stocks Churn as Oil Advance Boosts Treasury Yields: Markets Wrap https://www.bloomberg.com/news/articles/2026-08-09/stock-market-today-dow-s-p-live-updates?utm campaign=bn&utm medium=distro&utm source=yahooUS - Trump Amps Up Pressure on Billionaire Sargeant to Exit Venezuela https://www.bloomberg.com/news/articles/2026-08-08/trump-amps-up-pressure-on-billionaire-sargeant-to-exit-venezuela?utm campaign=bn&utm medium=distro&utm source=yahooUS The company has been in discussions with supplier Taiwan Semiconductor Manufacturing Co. to secure manufacturing capacity for over 300,000 of the chips for delivery in 2027, the technology news site reported on Monday, citing people familiar with the situation. Microsoft is preparing to unveil its new Maia 300 chip this fall, the Information said. Microsoft's chip push started years after Amazon.com Inc. and Alphabet Inc.'s Google began designing their own chips, and the Maia line is widely seen as less mature than its rivals, which are already widely used to power AI services. Anthropic PBC alone has deals to use 1 million Amazon Trainium chips and Google Tensor Processing Unit accelerators. All three cloud-computing giants are aiming for technology that can be plugged into data centers and offer savings and other efficiencies to cloud customers. The high costs and short supply of chips from Nvidia Corp. has fueled a scramble to find alternative sources of computing power. Microsoft started rolling out Maia 200, its second-generation AI accelerator, earlier this year. A Microsoft manager declined to comment on specific production plans but said the company ultimately aimed to produce gigawatts' worth of Maia chips, the Information reported. Microsoft shares rose about 1.3% at 9:48 a.m. in New York. Updates with context starting in the third paragraph. Most Read from Bloomberg Businessweek - How Apple and India Built an Alternative iPhone Production Hub https://www.bloomberg.com/news/features/2026-08-05/apple-builds-iphone-production-capacity-in-india-to-hedge-its-china-risk?utm campaign=bw&utm medium=distro&utm source=yahooUS - Supercharged by Social Media, the GLP-1 Boom Is Warping Teen Psyches https://www.bloomberg.com/news/features/2026-08-10/youtube-tiktok-glp-1-content-has-teens-obsessing-over-their-health-bodies?utm campaign=bw&utm medium=distro&utm source=yahooUS - The $5 Billion Cosmetics Company Behind the High-Flying Rhode Brand https://www.bloomberg.com/news/features/2026-08-07/hailey-bieber-founded-rhode-helps-power-e-l-f-beauty-to-5-billion-empire?utm campaign=bw&utm medium=distro&utm source=yahooUS ©2026 Bloomberg L.P.