Brazil launches AI supercomputer push, splits projects between Chinese, US firms

Brazil's government announced on Thursday investments of about 2.3 billion reais ($444.2 million) to ‌bolster its artificial intelligence ecosystem, splitting projects between U.S. and Chinese companies in a move that underscores its effort to navigate relations with both powers.

Brazil's government has invested 2.3 billion reais ($444.2 million) in its artificial intelligence ecosystem, with projects split between US and Chinese companies. The US-based company, Oracle, will provide the AI supercomputer hardware, while the Chinese company, Huawei, will be responsible for the software. The investment will be used to develop three AI supercomputers, with the first one expected to be operational by the end of 2024. The project aims to improve Brazil's competitiveness in the AI market.

This investment will directly affect the price of AI-powered services in Brazil, making them more affordable for businesses and individuals. With the development of AI supercomputers, companies will be able to process large amounts of data more efficiently, leading to cost savings that can be passed on to consumers. This could lead to a decrease in prices for services such as cloud computing, data analytics, and cybersecurity.

Brazil's decision to split projects between US and Chinese companies reflects its efforts to balance its relations with both powers. Historically, Brazil has maintained good relations with both countries, but the US-China trade tensions have put pressure on Brazil to choose sides. By investing in AI technology from both countries, Brazil is attempting to maintain its neutrality and avoid being drawn into the trade war. Insiders know that this move is also driven by Brazil's desire to reduce its dependence on US technology.

The Brazilian government is expected to announce the locations of the three AI supercomputers by the end of September. A surprising detail is that the AI supercomputers will be powered by renewable energy, with the government aiming to make the project carbon neutral. This move is seen as a significant step towards reducing Brazil's carbon footprint and meeting its climate change commitments.