Brazil unveils 2.3 billion reais AI investment split between U.S. and Chinese firms
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Brazil's government announced on Thursday investments of about 2.3 billion reais ($444.2 million) to bolster its artificial intelligence ecosystem, splitting projects between U.S. and Chinese companies. Just over half the total, 1.3 billion reais, will fund a supercomputing infrastructure project in Rio de Janeiro developed with China's Huawei Technologies and iFlytek.
Key Facts
- About 1 billion reais will be allocated through a tender for a supercomputer that Brazil expects to rank among the world's 10 most powerful AI processing machines, to be installed in the northeastern state of Rio Grande do Norte.
- Government officials, speaking on condition of anonymity, said they expect U.S. chipmaker Nvidia to win the tender.
- The investments will be funded by the National Fund for Scientific and Technological Development (FNDCT) through phased disbursements.
- The supercomputer is expected to begin operating by the end of next year, while the cooperation agreement with Huawei Technologies and iFlytek is scheduled to start in July 2027.
- President Luiz Inacio Lula da Silva's government said the strategy is aimed at strengthening national sovereignty over data and not depending on a single company, technology or country.
The Investment Plan
Brazil's government announced on Thursday investments of about 2.3 billion reais ($444.2 million) to bolster its artificial intelligence ecosystem, splitting projects between U.S. and Chinese companies. Just over half the total, 1.3 billion reais, will fund a supercomputing infrastructure project in Rio de Janeiro developed with China's Huawei Technologies and iFlytek. President Luiz Inacio Lula da Silva's government said the infrastructure will be used primarily to develop large language models for general and sector-specific applications. Separately, about 1 billion reais will be allocated through a tender for a supercomputer that Brazil expects to rank among the world's 10 most powerful AI processing machines, to be installed in Rio Grande do Norte. The investments will be funded by the National Fund for Scientific and Technological Development (FNDCT) through phased disbursements.
Strategic Autonomy and Nvidia Tender
Government officials, speaking on condition of anonymity, said they expect U.S. chipmaker Nvidia to win the tender. Science and Technology Minister Luciana Santos told the Folha de S.Paulo newspaper last week that she anticipated the company would be the supplier. The government expects the supercomputer to begin operating by the end of next year, while the cooperation agreement with the Chinese companies is scheduled to start in July 2027. Lula's administration said in a statement that the strategy is not to depend on a single company, technology or country, adding that the investments are aimed at strengthening national sovereignty over data. China has expanded its role as Brazil's largest trading partner, while the U.S. remains the biggest source of foreign direct investment in Latin America's largest economy, despite losing market share in trade and recently imposing additional tariffs on Brazilian goods.
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Brazil unveils 2.3 billion reais AI investment split between U.S. and Chinese firms
