Nvidia Advocates for Government Support of AI in Brazil

Nvidia is urging the Brazilian government to support AI initiatives due to increasing demand from various industries for their components. Research institutions are awaiting funding to acquire Nvidia’s technology. Despite the company’s strong financial performance, challenges due to funding and international trade restrictions persist, particularly when compared to global competitors like China.

Nvidia is advocating for governmental support for artificial intelligence (AI) in Brazil, as industries like retail and telecommunications increasingly demand the company’s components and software. Marcio Aguiar, the head of Nvidia’s Enterprise division for Latin America, shared these insights in an interview with Valor, following the announcement of Nvidia’s impressive financial results.

However, research institutions and public entities are currently waiting for government funding to procure servers equipped with Nvidia’s advanced graphics processing units (GPUs). Mr. Aguiar noted, “We have been holding many meetings with national research laboratories and training researchers who are waiting for the government to release funds.”

Notable institutions such as Banco do Brasil, Dataprev, Embrapa, and Serpro are among those seeking funding to acquire high-performance computers from Nvidia’s partner manufacturers. Mr. Aguiar stated, “The country is ready to accelerate AI advancements, but our computer manufacturing partners cannot deliver due to a lack of funds.”

Aguiar expressed concern regarding competition with countries like China, which has both financial investment and skilled personnel, while distinguishing the U.S. government’s restrictions on component export to Brazil and other nations. In January, Nvidia and other U.S. chipmakers voiced their opposition to the Biden administration’s export rule tightening on high-performance AI components.

Nvidia recently reported exceeding financial analysts’ expectations in its fiscal fourth-quarter results for 2025, achieving a net profit of $22.1 billion, a 79.8% increase year-on-year, with a revenue of $39.3 billion. Moreover, the company projected revenue of $43 billion for the first quarter of 2026, surpassing analysts’ estimates, which eases market apprehension over the rise of the Chinese startup DeepSeek, which introduced a generative AI chatbot similar to ChatGPT.

Mr. Aguiar remarked, “We understand that not all companies require large data loads to process AI applications at the beginning of their projects and may choose to invest gradually.” He acknowledged the evolution of large language models (LLMs) exemplified by DeepSeek’s mixed-model approach. Following these announcements, Nvidia’s stock experienced a rise of 3.67% on the Nasdaq before slightly dipping after hours.

In summary, Nvidia is calling for financial support from the Brazilian government to facilitate advancements in AI technology. The company’s strong fiscal performance highlights its significant market position, while challenges related to funding and international trade restrictions remain. As industries increasingly rely on advanced technologies, collaboration between the government and research institutions will be essential for Brazil to compete in the global AI landscape.

Original Source: valorinternational.globo.com