- Brazil's government announced investments of about 2.3 billion reais ($444.2 million) to bolster its artificial intelligence ecosystem, splitting projects between U.S. and Chinese companies in a move that underscores its effort to navigate relations with both powers.
- Just over half the total, 1.3 billion reais, will fund a supercomputing infrastructure project in Rio de Janeiro developed in partnership with China's Huawei Technologies and iFlytek.
- 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.
- The machine will be installed in the northeastern state of Rio Grande do Norte, chosen for its energy potential.
- Government officials expect U.S. chipmaker Nvidia to win the tender.
- 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.
- The infrastructure will be used primarily to develop large language models for general and sector-specific applications.
- The investments will be funded by the National Fund for Scientific and Technological Development (FNDCT) through phased disbursements.
- Lula's administration stated, "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.
- Brazil also announced a partnership with Spain based on the open-source RISC-V architecture to develop semiconductors.
Brazil is investing 2.3 billion reais ($444 million) to enhance its artificial intelligence ecosystem, strategically partnering with both U.S. and Chinese firms. The investment aims to bolster national sovereignty over data while navigating complex international relations.1
Just over half of the total funding, 1.3 billion reais, will support a supercomputing infrastructure project in Rio de Janeiro, developed in collaboration with China's Huawei Technologies and iFlytek. This infrastructure is intended for the development of large language models applicable to various sectors.27
Additionally, 1 billion reais will be allocated through a tender for a supercomputer expected to rank among the world's ten most powerful AI processing machines. This machine will be installed in Rio Grande do Norte, chosen for its energy potential. Government officials anticipate that U.S. chipmaker Nvidia will win the tender, as indicated by Science and Technology Minister Luciana Santos.345
Lula's administration emphasized, “The strategy is not to depend on a single company, technology or country,” highlighting the importance of diversifying partnerships. The investments will be funded by the National Fund for Scientific and Technological Development (FNDCT) through phased disbursements. The supercomputer is expected to begin operations by the end of next year, while the cooperation agreement with Chinese companies is set to start in July 2027.68
This initiative reflects Brazil's efforts to balance its relationships with both superpowers, as China has become a leading player in AI and the largest trading partner for Brazil, while the U.S. remains the biggest source of foreign direct investment in the country.
“The Rio de Janeiro project with Huawei and iFlytek will focus on developing large language models, while the separate supercomputer in Rio Grande do Norte is expected to rank among the world's top 10. The government plans to fund the investments through FNDCT, with the supercomputer operational by end of next year.”
