Microsoft reported one of its strongest quarters recently, with CEO Satya Nadella crediting the company’s homegrown AI chips. During the fiscal Q4 2026 earnings call, Nadella revealed that Microsoft’s custom silicon delivered a 40% improvement in inference throughput for its Copilot models. Microsoft shares jumped more than 8% in after-hours trading. The Maia 200, Microsoft’s custom AI accelerator chip announced in January 2026 and operating in data centers in Iowa and Arizona, delivers over 30% better tokens per dollar than previous hardware. Microsoft’s MAI models running on the Maia 200 also saw a matching 40% performance increase. Microsoft maintains strategic partnerships with both Nvidia and AMD, adopting a multi-vendor strategy. Azure revenue grew 43% year-over-year in the quarter ending June 30, 2026. Microsoft’s AI business hit an annual recurring revenue run rate above $37 billion, a 123% increase from the prior year. Microsoft spent approximately $41 billion on AI infrastructure capital expenditures in the quarter.