Brazil’s government declared on Thursday investments of approximately 2.3 billion reais ($444.2 million) to bolster its artificial intelligence ecosystem, splitting projects among 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 venture in Rio de Janeiro evolved in partnership with China’s Huawei Technologies and iFlytek (002230.SZ)
President Luiz Inacio Lula da Silva’s authorities said the infrastructure will be used particularly develop large language models for general and sector-specific applications.
Separately, approximately 1 billion reais will be allocated via a tender for a supercomputer that Brazil anticipates to rank among the world’s 10 most powerful AI processing machines.
The machine will be set up in the northeastern state of Rio Grande do Norte, chosen for its energy potential. Lula attended an declaration ceremony in the state on Thursday.
Government officials, speaking on condition of anonymity, said they anticipate U.S. Chipmaker Nvidia (NVDA.O), to win the tender. Science and Technology Minister Luciana Santos instructed the Folha de S. Paulo newspaper last week that she expected the company would be the supplier.
“The strategy isn’t always to rely on a single company, technology or country,” Lula’s administration stated in a statement, adding that the investments are targeting toward reinforcing national sovereignty over facts.
Lula has Pushed for Strategic Autonomy
China, a main player in AI, has expanded its role as Brazil’s largest trading partner. The U.S., in the meantime, stays the biggest source of foreign direct investment in Latin America’s largest economic in spite of dropping market share in trade and these days enforcing additional tariffs on Brazilian goods.
The investments will be funded via the National Fund for Scientific and Technological Development (FNDCT) through phased disbursements. The authorities anticipates the supercomputer to start working by the end of next year, while the cooperation agreement with the Chinese companies is scheduled to begin in July 2027.
Lula, a leftist who has repeatedly burdened the need for strategic autonomy, is running for re-election later this year. His main rival, ring-wing Senator Flavio Bolsonaro, has pledged closer ties with U.S. President Donald Trump if elected.
The government also declared a partnership with Spain based on the open-source RISC-V architecture to develop semiconductors, plans for a Brazilian cloud-computing service via public-private partnerships, and the future creation of a national center for algorithmic transparency and truthful AI, to be operated by the Federal University of Minas Gerais.
($1 = 5.1774 reais)
