Nvidia Advocates for Government Support to Enhance AI in Brazil

Nvidia reports rising demand for its components in Brazil from various sectors, yet key research institutions await government funding to acquire essential GPUs. The company recently announced significant financial gains, including a 79.8% year-over-year profit increase. While Brazil strives to advance its AI capabilities, it faces funding challenges compared to countries with looser investment restrictions, such as China.

Nvidia is observing an increasing demand for its products from various sectors in Brazil, including retail and telecommunications, according to Marcio Aguiar, head of Nvidia’s Enterprise division for Latin America. This trend follows the company’s recent announcements regarding its financial performance, indicating strong market interest in Nvidia’s components and software.

However, critical research laboratories and public institutions in Brazil are still awaiting government funding to procure servers that utilize Nvidia’s advanced graphics processing units (GPUs). “We have been holding many meetings with national research laboratories and training researchers who are waiting for the government to release funds,” stated Mr. Aguiar.

Prominent institutions, such as Banco do Brasil, Dataprev, Embrapa, and Serpro, are among those recognized as waiting for these essential funds to enhance their computing capabilities with Nvidia’s technology. Mr. Aguiar emphasized, “The country is ready to accelerate AI advancements, but our computer manufacturing partners cannot deliver due to a lack of funds.”

He further noted that while Brazil faces funding challenges, China continues to cultivate investments and possesses a skilled workforce. Additionally, the U.S. government’s restrictions on component exports exacerbate the situation in Brazil. Nvidia, alongside other major U.S. chip manufacturers, criticized the Biden administration’s tightening of export rules affecting nations like Brazil.

Despite these challenges, Nvidia reported a net profit of $22.1 billion, marking a significant year-over-year increase of 79.8%. Furthermore, their revenue surged to $39.3 billion for the last quarter, an increase of 77.9% compared to the previous year. The company anticipates a revenue of $43 billion for the first fiscal quarter of 2026, exceeding market expectations.

In light of rising concerns about competing products, such as DeepSeek’s generative AI chatbot, Mr. Aguiar expressed that Nvidia is not surprised by the evolution within this technology sector. He 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.” During this period, Nvidia’s stock experienced a closing rise of 3.67% on Nasdaq.

In conclusion, Nvidia advocates for increased government funding to facilitate the acquisition of high-performance computing technologies in Brazil. Despite strong market performance and revenue growth, the delays in public funding are hindering advancements in AI technology within the nation. Meanwhile, the competitive landscape continues to evolve, necessitating a strategic approach for companies navigating this sector.

Original Source: valorinternational.globo.com