Brazil bets $444M on AI, splitting the build between US and China

Two stories show how the AI build-out is playing out — one sovereign, one on your AWS bill.

Brazil is putting 2.3 billion reais (about $444 million) into its AI ecosystem, and it is deliberately splitting the work between American and Chinese technology. The larger slice — 1.3 billion reais, roughly $251 million — backs a supercomputing project in Rio de Janeiro built with China's Huawei and iFlytek, aimed at training large language models. A second, roughly 1 billion reais effort is expected to buy a machine that would rank among the world's top ten, with Nvidia the front-runner to supply it. The split is the point: President Luiz Inácio Lula da Silva's government is courting both Washington and Beijing so the country does not lock itself into a single vendor or nation. It is a small number next to the hundreds of billions flowing through US hyperscalers, but it is a clear signal that "AI sovereignty" is now a middle-power priority, not just a rich-world luxury. The real test is whether Brazilian-built models and compute can find users before the next administration rewrites the plan.

OpenAI's Codex agent is racking up roughly 10x its expected bill when run on Amazon Bedrock, because the CLI cannot turn on prompt caching. A developer's bug report lays out the mechanics: on an agentic coding workload, Codex sends requests to Bedrock's Mantle Responses API for the GPT-5.6 Sol model without the cache-control flags AWS documents for exactly this kind of long, stable instruction prefix. The result was ugly — cache-write tokens made up about 85% of estimated spend, roughly $1,182 of $1,386 across four days of usage. The reporter stresses this is not every cache write being a defect, but native Bedrock Codex currently has no way to use the documented explicit-cache path at all, so stable-prefix workloads pay full price on every turn. For teams betting on Codex-as-infrastructure, it is a reminder that the agent tax is not only compute and latency — it is the quiet line items you do not control.

What to watch: whether Brazil's Huawei tie-up draws Washington's scrutiny the way other Chinese AI deals have.

Should government-funded AI infrastructure favor sovereign control over the cheapest hardware? Tell us in the comments.

Sources: OpenAI Codex issue #37674 (GitHub)

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Akhetonics says its all-optical CPU reaches a customer in 2026

The Week in AI — October 5–11, 2026

Drone strike shuts a third Yandex data center, taking YandexGPT offline

Agent teams cost up to 5x more, barely score higher