Microsoft won’t stop buying AI chips from Nvidia, AMD, even after launching its own, Nadella says 

Microsoft has introduced its first in-house AI chip, the Maia 200, deployed in one of its data centers with plans for broader rollout. Designed as an "AI inference powerhouse," Maia 200 is optimized for running AI models in production and reportedly outperforms competing chips, including Google's latest Tensor Processing Units (TPUs). This move aligns with a broader industry trend where cloud giants develop proprietary AI chips to address supply constraints and high costs associated with Nvidia’s latest hardware. Despite launching Maia 200, Microsoft CEO Satya Nadella emphasized that the company will continue purchasing AI chips from Nvidia and AMD, highlighting ongoing partnerships and mutual innovation. Nadella noted that vertical integration does not preclude using third-party components, reflecting a pragmatic approach to balancing in-house development with external technology. The Maia 200 chip will initially be used by Microsoft’s Superintelligence team, led by a former Google DeepMind co-founder, to build advanced AI models aimed at reducing reliance on external providers like OpenAI and Anthropic