In a large bowl with an electric mixer, cream the sugar, vanilla, and butter together until light and fluffy. Beat in eggs, one at a time until well-combined.
In a small bowl, whisk together the flour, cocoa, baking powder, and salt. Slowly add flour mixture to egg mixture until well-combined. Stir in the chocolate chips.
Spray an 8-inch spring-form pan with nonstick cooking spray. Spoon batter into pan and smooth the top; cover loosely with aluminum foil. Pour water into Instant Pot®. Place wire trivet into the bottom of the pot and set the pan on top. Place lid on pot and lock into place to seal. Cook on High Pressure for 30 minutes. Let sit 10 minutes. Use Quick Pressure Release. While still warm, cut into wedges and serve.