Nvidia Advocates for Government Support of AI Development in Brazil
Nvidia reports increasing demand for its products in Brazil, amid calls for government funding to assist research institutions in acquiring advanced computing technology. Despite exceeding financial expectations, the company faces market competition, particularly from emerging entities like DeepSeek in China. Mr. Aguiar emphasizes the need for governmental support to facilitate AI advancements in Brazil, as funding delays impede progress.
Nvidia is experiencing increased demand for its components and software across various sectors in Brazil, including retail and telecommunications. Marcio Aguiar, the head of Nvidia’s Enterprise division for Latin America, highlighted this trend in an interview with Valor following the company’s financial results announcement. Despite this surge, research labs and public institutions in Brazil are awaiting government funding to purchase servers equipped with Nvidia’s advanced graphics processing units (GPUs).
Aguiar noted the company’s ongoing engagement with national research laboratories and researchers who are dependent on government fund release. Major institutions such as Banco do Brasil, Dataprev, Embrapa, and Serpro are among those eager to acquire high-performance computers from Nvidia’s partners. He emphasized that while Brazil is poised to advance in AI, delays in funding are hindering progress, especially compared to other countries like China, where investments and skilled professionals are more readily available.
Nvidia has recently criticized the U.S. government for tightening export rules on high-performance AI components, which affects countries including Brazil, as well as markets like China, Russia, North Korea, and Iran. Following the announcement of its fourth-quarter financial results for 2025, Nvidia reported a net profit of $22.1 billion, a remarkable 79.8% increase year-over-year, with revenues reaching $39.3 billion, representing a 77.9% rise.
Further, Nvidia’s projected revenue for the first fiscal quarter of 2026 is estimated at $43 billion, exceeding Wall Street expectations. This prediction alleviates some market concerns following the introduction of DeepSeek, a Chinese startup that has developed a cost-effective generative AI chatbot comparable to OpenAI’s ChatGPT. Mr. Aguiar remarked on DeepSeek’s innovative approach to AI application development, demonstrating the capability of combining multiple large language models.
In recent trading, Nvidia’s stock price increased by 3.67% on Nasdaq, though it experienced a slight dip of 0.30% in after-hours trading. The article was translated from Valor Econômico using artificial intelligence technology while ensuring adherence to editorial standards, ensuring clarity and accuracy in the information presented.
Nvidia is facing a dual challenge: it is experiencing robust demand for its technology in Brazil while simultaneously urges governmental action to facilitate funding for essential research institutions. With significant increases in profits and revenue, Nvidia is well-positioned in the market, yet it faces competition from innovations emerging in other countries, particularly in AI development. Active collaboration and support from the Brazilian government could promote advancements in AI technology within the country.
Original Source: valorinternational.globo.com
