Preheat your oven to 350 degrees F and grease a 9x13 baking dish.
Add all of the ingredients for the cake to a large mixing bowl or the bowl of a stand mixer. Mix everything together using a paddle attachment or an electric hand mixer. The batter will be thick but smooth.
1/2 cup butter, softened, 1 1/2 cups sour cream, 3 eggs, 2 teaspoons vanilla extract, 2 cups flour, 1 1/2 cups sugar, 2 teaspoons baking powder, 1/2 teaspoons baking soda, 1/2 teaspoons salt
Spread half of the cake batter in the bottom of the prepared cake pan. Sprinkle ⅛ cup of sugar and one cup of the mini chocolate chips over the layer of cake batter.
1/2 cup sugar, 2 cups mini chocolate chips
Drop the rest of the cake batter into the pan and spread it across the chocolate chip layer. It is okay if some of the sugar and chocolate chips get mixed into the batter. In fact, it is good! You want to slightly mix the chips into the batter.
Sprinkle the rest of the sugar and chocolate chips over the top of the cake.
Bake the cake for 30 minutes. The top of the cake will be golden brown and the cake will be pulling from the edges of the pan slightly. Do not overbake the cake! It becomes dry pretty quickly.
Cut the cake and serve while warm.