Brazil announces $444m AI investment plan partnering with US and Chinese firms

Brazil will invest about 2.3bn reais ($444.2m) to bolster its artificial intelligence ecosystem, splitting projects between United States and Chinese tech firms in a strategic move that underscores its efforts to balance ties with both superpowers.

Just more than half the total, 1.3bn reais ($251m), will fund a supercomputing infrastructure project in Rio de Janeiro developed in partnership with China’s Huawei Technologies and iFlytek, President Luiz Inacio Lula da Silva‘s government said on Thursday.

The infrastructure will be used primarily to develop large language models for general and sector-specific applications, it said.

Separately, about 1 billion reais ($193.1m) 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. Lula attended an announcement ceremony in the state on Thursday.

The Reuters news agency quoted unnamed government officials as saying they expect US 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 strategy is not to depend on a single company, technology or country,” Lula’s administration said in a statement, adding that the investments are aimed at strengthening national sovereignty over data.

China, a leading player in AI, has expanded its role as Brazil’s largest trading partner. The US, meanwhile, 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.

The investments will be funded by the National Fund for Scientific and Technological Development (FNDCT) through phased disbursements. 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.