Huawei reportedly eyeing AI and tech business expansion in Brazil

A new report says that Huawei is looking to gain a significant foothold in Brazil for its AI and tech business. The firm plans to invest in the respective country to boost its technological growth. However, this step could increase concerns for the US.

Huawei continues to face tech tensions outside China. But that didn’t stop it from exploring new opportunities. After China, the OEM aims to expand its tech business in major parts of the world.

On Monday, Folha de S. Paulo – a Brazilian newspaper outlined that Huawei is considering shaking hands with Dataprev in Brazil for its AI business. The firm is responsible for managing the country’s social data systems used in data centers.

Apart from Dataprev, Huawei can further team up with Edge UOL. It is a cloud infrastructure sector, owned by Grupo UOL PagSeguro. The Chinese tech giant already met with Edge UOL in May this year in China with some top executives.

The latest business workarounds appeared at the time when the US restricted Chinese investments in “critical technology infrastructure across Latin America”. The reasons are the same – data theft and strategic leverage.

Besides Huawei, ByteDance is in talks to expand its footprint in Brazil’s AI and cloud infrastructure. It is considering new data center projects in Ceará with a 300-megawatt data facility and aims to triple in scale with renewable energy provider Casa dos Ventos.

(Image Credits: Huawei)

During the May meeting, Huawei Cloud division’s Latin America President, Mark Chen, said:

“We want to be the bridge between China and Latin America.”

He also described the Brazilian firm Edge UOL as a major strategic service partner. On the other hand, Rodrigo Lobo – the Chief Operating Officer of Edge UOL, added that the new partnership targets an essential expansion into infrastructure, cybersecurity, and AI operations across Brazil.

Marcio Elias, the executive secretary at Brazil’s Ministry of Industry and Trade, said the government aims to welcome Chinese AI expertise directly to factory floors, as they can boost productivity and sharpen the competitiveness of Brazilian industry.

“China has the know-how, and we know we can benefit from that exchange.”

Another executive added: “And the correct word is ‘share’ because we need to learn to work together so that things can bear the fruits we need.”

While it can be good news for Huawei and ByteDance, the US might lose its calm over this matter. It has seen Huawei and Chinese firms as a threat to national security. Although Brazil kept striving to hold effective bonds with both countries over cost, development, and energy needs.

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