Brazil has announced approximately 2.3 billion reais, or US$444.2 million, in artificial-intelligence investments that will divide major computing projects between Chinese and American technology suppliers.
More than half of the funding, about 1.3 billion reais, will support a supercomputing project in Rio de Janeiro being developed with China’s Huawei and iFlytek. The infrastructure will be used to develop large language models for general purposes and specialised sectors.
A separate one-billion-real allocation will finance a supercomputer in Rio Grande do Norte that Brazil expects to rank among the world’s 10 most powerful machines for AI processing. The supplier will be selected through a tender, although government officials reportedly expect American chipmaker Nvidia to win.
Brazil’s decision to divide the projects carries strategic significance beyond the technology itself. China is the country’s largest trading partner, while the United States remains its biggest source of foreign direct investment. Working with suppliers from both countries allows Brazil to obtain advanced technology while reducing its exposure to worsening competition between Washington and Beijing.
The investments will be financed through Brazil’s National Fund for Scientific and Technological Development and released in stages. The Rio Grande do Norte supercomputer is expected to begin operating by the end of 2027, while the agreement involving Huawei and iFlytek is scheduled to start in July of that year.
The government also announced plans for a Brazilian cloud-computing service developed through public-private partnerships. Other initiatives include a semiconductor collaboration with Spain using open-source RISC-V architecture and a national centre for algorithmic transparency and trustworthy AI.
For investors, the programme could create opportunities in data-centre construction, renewable electricity, cooling systems, fibre connectivity, cybersecurity, cloud services and professional training. Rio Grande do Norte was selected partly because of its energy potential, demonstrating how access to reliable electricity is becoming a decisive factor in attracting AI infrastructure.
