Nvidia calls for Brazilian government support for AI development, as institutions await funding for advanced GPU servers. The company reports record profits, but faces challenges from funding shortages and competition from startups like DeepSeek. Nvidia’s strong financial outlook highlights the importance of AI technology for growth in Brazil.
Nvidia is actively calling on the Brazilian government to provide support for artificial intelligence (AI) advancement. According to Marcio Aguiar, head of Nvidia’s Enterprise division for Latin America, retailers and telecommunications companies, along with cloud service providers and oil and gas firms, are driving a growing demand for Nvidia’s components and software. However, research laboratories and public institutions are still waiting for necessary government funding to purchase servers equipped with Nvidia’s advanced graphics processing units (GPUs).
As Mr. Aguiar stated, numerous discussions with national research laboratories and training programs for researchers are ongoing, but the release of government funds remains pending. Institutions like Banco do Brasil, Dataprev, Embrapa, and Serpro are among those that are relying on this funding to enhance their capabilities with high-performance computers supplied by Nvidia’s partners. Mr. Aguiar expressed that while Brazil is poised for AI progress, the inability of their manufacturing partners to deliver due to funding shortages is a significant obstacle.
Furthermore, he noted that in contrast to Brazil, China benefits from both substantial investments and a talented workforce, while U.S. restrictions complicate the import of key components. In January, Nvidia and other American chip manufacturers, including AMD and Intel, criticized the Biden administration’s decision to tighten export regulations on high-performance AI components to nations including Brazil, along with China and several others.
Nvidia recently reported exceptional financial results for the fourth quarter of fiscal year 2025, with a net profit of $22.1 billion, reflecting a 79.8% increase from the previous year. Revenue for the quarter reached $39.3 billion, a 77.9% annual rise, and the company’s projected revenue for the first quarter of fiscal year 2026 of $43 billion exceeded market expectations.
In the context of growing competition from AI startups such as DeepSeek, which launched a generative AI chatbot comparable to ChatGPT at a lower cost, Mr. Aguiar acknowledged that it did not come as a surprise to Nvidia. He asserted that not all enterprises require extensive data for initial AI projects and may prefer a gradual investment strategy. DeepSeek’s innovative mixing of various large language models (LLMs) represents a significant development in the evolution of AI technologies.
On the stock market, Nvidia’s shares closed up 3.67% on Nasdaq, although they saw a modest after-hours decline of 0.30%. This article was translated from Valor Econômico using artificial intelligence, ensuring accuracy and clarity under the supervision of the editorial team.
In conclusion, Nvidia is advocating for increased government support for AI development in Brazil, as local institutions face funding delays that hinder technological advancement. The company’s strong financial performance signals significant growth, yet competition from startups poses new challenges. The evolving landscape of AI presents opportunities for gradual investments in technology. Overall, Nvidia’s influence in the region remains critical for fostering AI capabilities.
Original Source: valorinternational.globo.com
