Nvidia Corp ( NASDAQ:NVDA , XETRA:NVD ) shares fell 1% to $226.55, down $2.73, after Microsoft Corp (NASDAQ:MSFT) unveiled a new artificial intelligence chip that threatens to reduce its reliance on the graphics processor maker.
Microsoft, the software and cloud computing giant, introduced its third-generation Maia 300 processor on Monday, targeting lower costs and greater efficiency in running AI workloads across its products and services.
The chip is designed to deliver 40% more tokens per megawatt than leading graphics processing unit (GPU) systems, with a configuration of 96 accelerators offering up to seven times the rack-scale throughput of its predecessor, Maia 200.
Microsoft plans to begin deploying Maia 300 in production workloads in 2027 and scale its in-house chip programme to multi-gigawatt deployments, making Maia its primary system for AI inference, the process of running trained models to generate responses.
The move presents a potential competitive challenge for Nvidia and Advanced Micro Devices, whose processors have supplied much of the hardware used to run AI services, as cloud providers seek greater control over infrastructure costs and performance.
Microsoft already uses Maia 200 in production, including for Microsoft Copilot, and plans to extend its deployment across additional services as it develops its own AI models and infrastructure.
The Maia 300 uses a chiplet architecture built around Taiwan Semiconductor Manufacturing Company's advanced manufacturing technology, separating computing, memory control and input-output functions to improve efficiency.
Nvidia's broader market position will depend on whether demand for AI computing continues to expand enough to offset customers developing their own alternatives, while Microsoft's planned rollout remains more than a year away.
