Nvidia Calls for Government Support for AI Development in Brazil
Nvidia is witnessing rising demand for its AI components in Brazil, while public institutions await government funding for GPUs. Marcio Aguiar highlights the contrast in investment between Brazil and China, as Nvidia reports strong financial results, including a $22.1 billion profit for the last quarter.
Nvidia is witnessing a growing demand for its components and software from various sectors in Brazil, including retailers and telecommunications, as reported by Marcio Aguiar, the head of Nvidia’s Enterprise division for Latin America, in an interview with Valor. However, research laboratories and public institutions are awaiting government funding to obtain servers equipped with Nvidia’s advanced graphics processing units (GPUs).
Mr. Aguiar emphasized that many national research labs and training programs are in a holding pattern, reliant on the government to release necessary funds. Institutions such as Banco do Brasil, Embrapa, and Dataprev await funding to acquire high-performance computers from Nvidia’s partner manufacturers. Aguiar remarked, “The country is ready to accelerate AI advancements, but our computer manufacturing partners cannot deliver due to a lack of funds.”
He contrasted Brazil’s situation with that of China, which possesses both investment resources and skilled professionals, stating that U.S. government export restrictions complicate the acquisition of components for Brazil. In January, Nvidia and other U.S. chipmakers criticized the Biden administration’s enforcement of tighter export regulations on high-performance AI components for several countries, including Brazil.
In its recent financial report, Nvidia exceeded analysts’ expectations with a net profit of $22.1 billion for the fiscal fourth quarter, showcasing a 79.8% increase year-over-year. The company also reported total revenue of $39.3 billion for the same period, a rise of 77.9% compared to the previous year. Additionally, Nvidia’s projected revenue of $43 billion for the first fiscal quarter of 2026 surpassed Wall Street’s estimate of $42 billion.
Aguiar noted that Nvidia was not surprised by the emergence of competition, such as the Chinese startup DeepSeek, which introduced a cost-effective generative AI chatbot. He explained, “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.” Further, he recognized that DeepSeek’s approach signifies an evolution in the use of large language models (LLMs).
On the financial markets, Nvidia’s stock rose by 3.67% on Nasdaq, although it experienced a slight decrease of 0.30% in after-hours trading. The article was translated from Valor Econômico using an artificial intelligence tool to enhance readability and maintain accuracy, guided by the Valor International editorial team’s standards.
In conclusion, Nvidia is experiencing increased demand in Brazil but faces challenges due to delayed government funding for research institutions. The company reported significant financial success, and while it acknowledges an emerging competitive landscape, it remains confident in its strategic advantages and the potential of AI advancements in Brazil.
Original Source: valorinternational.globo.com
