Brazil’s government unveiled plans to invest approximately 2.3 billion reais ($444.2 million) in artificial intelligence infrastructure, dividing projects between partnerships with Chinese firms and a competitive tender expected to favor U.S. chipmaker Nvidia.
The National Fund for Scientific and Technological Development (FNDCT) will fund the initiatives through phased disbursements. Roughly 1.3 billion reais will support a supercomputing project in Rio de Janeiro developed with Huawei Technologies and iFlytek, targeting the development of large language models for both general and sector-specific applications. The cooperation agreement is slated to commence in July 2027.
A separate tender-based supercomputer, allocated about 1 billion reais, will be located in Rio Grande do Norte, chosen for its energy infrastructure. President Luiz Inacio Lula da Silva attended the announcement ceremony in the state on Thursday. Science and Technology Minister Luciana Santos indicated last week that Nvidia is the anticipated supplier, with operations expected to begin by the end of next year.
Additional initiatives include a partnership with Spain to advance semiconductor development using the open-source RISC-V architecture. The government also outlined plans for a Brazilian cloud-computing service via public-private partnerships and the creation of a national center for algorithmic transparency and trustworthy AI, to be operated by the Federal University of Minas Gerais.
The announcement underscores Brazil’s strategy to diversify technological dependencies amid geopolitical tensions. China remains Brazil’s largest trading partner, while the U.S. leads as the top source of foreign direct investment, despite recent trade frictions, including additional U.S. tariffs on Brazilian goods. President Lula, running for re-election later this year, has emphasized strengthening national sovereignty over data and reducing reliance on single suppliers or nations.
