The company is negotiating a major production expansion that could reshape how its cloud infrastructure handles the growing demand for artificial intelligence.
Microsoft plans to unveil its new Maia 300 AI chip in the fall of 2026. The presentation could take place as early as September.
The company is developing its own processors for artificial intelligence systems in an effort to reduce its reliance on expensive Nvidia chips. Microsoft announced the first chip in the Maia lineup in November 2023, but it still lags behind Alphabet and Amazon in scaling up in-house production.
Competition in the AI Processor Market
Google has already begun generating revenue from direct sales of its proprietary Tensor Processing Unit AI chips in the quarter ending in June. Amazon is also expanding the use of its processors, including Trainium chips.
Microsoft is in talks with TSMC over manufacturing capacity to produce more than 300,000 Maia 300 chips for delivery in 2027. The company is also considering a significant expansion in production volumes and wants major cloud services customers, including Anthropic, to use the new chip.
Plans for Maia 300 Production
In the longer term, Microsoft intends to secure manufacturing capacity for more than 1 million Maia 300 chips. However, component supplies and further agreements with TSMC regarding available production lines could complicate these plans.
In January 2026, Microsoft introduced Maia 200, the second generation of its in-house AI chips, manufactured by TSMC using a 3-nanometer process. The processor features a substantial amount of SRAM, memory that can accelerate AI systems when processing a large number of user requests simultaneously.
Maia 300 is set to become Microsoft’s next step in developing its own infrastructure for artificial intelligence and cloud computing.