Kathmandu— Brazil is investing approximately 2.3 billion reais ($444.2 million) to strengthen its artificial intelligence capabilities, strategically allocating projects to both United States and Chinese technology companies in an effort to maintain balanced relationships with the two global superpowers. The initiative includes funding for a supercomputing infrastructure project developed in partnership with Huawei Technologies and iFlytek of China, as well as a separate tender for another supercomputer expected to be among the world’s most powerful. These investments aim to bolster Brazil's national sovereignty over data and foster development of large language models.

Supercomputing Partnerships

Just over half of the total investment—1.3 billion reais ($251 million)—will fund a supercomputing infrastructure project in Rio de Janeiro, developed in collaboration with Chinese firms Huawei Technologies and iFlytek. President Luiz Inacio Lula da Silva’s government announced the funding on Thursday, stating that the infrastructure will primarily be used to develop large language models for both general applications and specific industry sectors.

Tender for High-Performance Computing

An additional 1 billion reais ($193.1 million) will be allocated through a tender process for a second supercomputer, which Brazil aims to rank among the top ten most powerful AI processing machines globally. The machine will be located in the northeastern state of Rio Grande do Norte, selected due to its significant energy potential. President Lula attended an announcement ceremony in the state on Thursday. Government officials anticipate that US chipmaker Nvidia will win the tender, with Science and Technology Minister Luciana Santos previously stating her expectation that the company would be the supplier.

Strategic Balancing Act

The Brazilian government emphasized its intention to avoid dependence on any single company, technology, or country in its AI development strategy. According to a statement released by Lula’s administration, these investments are designed to strengthen national sovereignty over data and ensure technological independence. China has become Brazil's largest trading partner, while the United States remains the biggest source of foreign direct investment into Latin America’s largest economy.

Funding and Timeline

The investments will be financed through phased disbursements from the National Fund for Scientific and Technological Development (FNDCT). The government anticipates that the new supercomputer will begin operations by the end of next year. The cooperation agreement with the Chinese companies is scheduled to commence in July 2027.

Brazil hopes these investments will position it as a key player in the rapidly evolving field of artificial intelligence and strengthen its technological independence.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.