The tech giant also faces hurdles in its in-house AI chip project. The Braga chip, originally set for 2025 production, is delayed to 2026, impacting follow-ups like Braga-R and Clea. Fearing obsolescence upon release, Microsoft revised its roadmap, planning a 2027 "compromise" Maia 280 to enhance performance and compete with Nvidia’s latest chips.

These dual challenges—layoffs and chip woes—highlight Microsoft’s pressure in the AI race. While remaining highly profitable, Nvidia’s technological lead underscores the risks of self-developed AI hardware. As Microsoft adapts, it must navigate the fine line between restructuring and avoiding falling behind in the competitive AI landscape.