Nvidia Advocates for AI Government Support in Brazil

Nvidia is urging the Brazilian government to provide support for AI initiatives as the demand for its products increases among retailers and telecommunications companies. Key public institutions are waiting for funding to purchase Nvidia’s technology. Despite impressive financial results, the need for investment in AI infrastructure highlights the challenges Brazil faces compared to countries like China.

Nvidia is calling for government support for artificial intelligence in Brazil as demand for its products surges among retailers and telecommunications companies. Marcio Aguiar, head of Nvidia’s Enterprise division for Latin America, indicated in a recent interview that various sectors are now eager to utilize the company’s advanced components and software.

Despite this growth, many research laboratories and public institutions in Brazil are still waiting for government funding to purchase servers equipped with Nvidia’s powerful graphics processing units. Mr. Aguiar noted that these institutions have been in discussion with Nvidia to secure the necessary finances but are still awaiting release from the government.

Institutions such as Banco do Brasil, Dataprev, Embrapa, and Serpro are included in the list of entities waiting for funding to invest in high-performance computing systems from Nvidia’s partners. Mr. Aguiar expressed the potential of Brazil in advancing AI but highlighted that without government funding, manufacturing partners are unable to meet demand.

Furthermore, he pointed out that while Brazil struggles with funding, countries like China are making significant strides due to their investments and skilled workforce. In January, Nvidia, along with other U.S. chipmakers, criticized the Biden administration for imposing stricter export regulations on high-performance AI components, impacting markets including Brazil.

On a financial note, Nvidia surpassed expectations in their fiscal fourth-quarter report for 2025, boasting a net profit of $22.1 billion, representing a 79.8% increase year-on-year. The company reported total revenue of $39.3 billion for the same period, an increase of 77.9% from the prior year, and projected revenue of $43 billion for the upcoming quarter, surpassing analysts’ expectations.

Mr. Aguiar also addressed the emergence of DeepSeek, a Chinese startup that unveiled an affordable generative AI chatbot. He remarked that DeepSeek’s innovative approach demonstrated that companies could continue to develop AI applications gradually without large initial datasets. He acknowledged the evolution of large language models, highlighting the creativity of mixing multiple models to create novel solutions.

On the stock market, Nvidia shares saw a 3.67% rise at Nasdaq, though they experienced a slight 0.30% decline in after-hours trading. This volatility reflects ongoing investor interest and advancements in the AI sector.

Nvidia’s plea for government support in Brazil underscores the urgent need for funding to propel AI advancements in the country. As demand for its technology escalates, many public institutions are hindered by a lack of financial resources. While Nvidia continues to perform impressively in financial markets, the disparity between Brazil and competing nations like China highlights significant challenges ahead in the AI landscape.

Original Source: valorinternational.globo.com