Microsoft Targets 300,000 Next-Gen AI Chips by 2027

Microsoft Corp. plans to significantly increase production of its next-generation artificial intelligence (AI) chips, according to a report by The Information. The technology news site reported on Monday, citing people familiar with the situation, that Microsoft has been in discussions with supplier Taiwan Semiconductor Manufacturing Co. (TSMC) to secure manufacturing capacity for over 300,000 of these chips for delivery in 2027.

Strategic Shift in AI Compute

The move by Microsoft is part of a broader trend among cloud-computing giants aiming for proprietary technology that can be integrated into their data centers. This strategy seeks to offer savings and efficiencies to cloud customers, driven by the high costs and short supply of chips from Nvidia Corp., which has fueled a scramble for alternative computing power sources.Microsoft is preparing to unveil its new Maia 300 chip this fall. The company had previously started rolling out Maia 200, its second-generation AI accelerator,…