Brazil Splits AI Supercomputer Push Between US and Chinese Firms

Brazil's government announced on August 20 investments of about 2.3 billion reais, or $444.2 million, to strengthen its artificial intelligence ecosystem, dividing projects between U.S. and Chinese companies in a move that underscores its effort to navigate ties 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. The government said the infrastructure will be used primarily to develop large language models for general and sector-specific applications.

Separately, about 1 billion reais will be allocated through a tender for a supercomputer that Brazil expects to rank among the world's ten most powerful AI processing machines. The system will be installed in the northeastern state of Rio Grande do Norte, chosen for its energy potential. Government officials, speaking on condition of anonymity, said they expect U.S. 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 supply the machine.

The administration of President Luiz Inacio Lula da Silva said the strategy aims to avoid dependence on a single company, technology, or country while strengthening national sovereignty over data. China is Brazil's largest trading partner, while the United States remains the largest source of foreign direct investment despite recently imposing additional tariffs on Brazilian goods.

The government also announced a partnership with Spain based on the open-source RISC-V architecture to develop semiconductors, plans for a Brazilian cloud-computing service through public-private partnerships, and the future creation of a national center for algorithmic transparency and trustworthy AI. The supercomputer is expected to begin operating by the end of next year, while the cooperation agreement with the Chinese companies is scheduled to start in July 2027.