Preheat oven to 325 degrees F (165 degrees C). Grease a 10-inch tube pan.
Beat butter and cream cheese together in a bowl using an electric mixer until light and fluffy; add sugar and mix well. Beat eggs, 1 at a time, into butter mixture, mixing well after each addition. Gradually mix flour, milk, baking powder, vanilla extract, and salt into butter mixture until batter comes together; fold in chocolate chips. Pour batter into the prepared pan.
Bake in the preheated oven until a knife inserted in the center of the cake comes out clean, about 1 hour.