The Brazilian government announced on August 16 an investment of approximately 2.3 billion reais ($444.2 million) to boost the country's artificial intelligence (AI) ecosystem. The projects are allocated to both American and Chinese tech companies, in a strategic move reflecting efforts to balance relations with the two superpowers.
According to a statement from the office of President Luiz Inacio Lula da Silva, more than half of the total amount, equivalent to 1.3 billion reais ($251 million), will fund a supercomputing infrastructure project in Rio de Janeiro, developed in cooperation with China's Huawei Technologies and iFlytek. This infrastructure will primarily support the development of large language models for general and sector-specific applications.
In a separate track, approximately 1 billion reais ($193.1 million) will be allocated through a tender for a supercomputer that Brazil expects to rank among the top 10 most powerful AI processing machines in the world. The equipment will be installed in the northeastern state of Rio Grande do Norte, chosen for its energy potential. President Lula attended the project's launch ceremony in the state on the same day.
Reuters quoted unnamed government officials as expecting US chipmaker Nvidia to win the tender. Science and Technology Minister Luciana Santos told Folha de S Paulo last week that she anticipates Nvidia will be the supplier.
President Lula's administration stressed: "The strategy is not to depend on a single company, technology, or country," adding that the investments aim to strengthen national sovereignty over data.
China, a leader in AI, has expanded its role as Brazil's largest trading partner. Meanwhile, the US remains the largest source of foreign direct investment in Latin America's biggest economy, despite a declining trade share and recent US tariffs on Brazilian goods.
The investment will be funded from the National Fund for Scientific and Technological Development (FNDCT) in phases. The Brazilian government expects the supercomputer to begin operating by the end of next year, while the cooperation agreement with Chinese companies is slated to start in July 2027.
