Elon Musk's Raging Feud Aside, Brazil Attracts $2.7B Investment From Microsoft To Boost AI Ecosystem

While Tesla and SpaceX CEO Elon Musk’s legal and operational difficulties in Brazil are ongoing, Microsoft Corporation MSFT has made progress in the country by pledging a $2.7 billion investment.

What Happened: On Thursday, Wedbush analyst Dan Ives highlighted this news that Microsoft’s investment, the largest single commitment by the company in Brazil, is intended to nurture the AI ecosystem in Latin America’s largest economy. 

Ives shared a post by a user named Evan on X, formerly Twitter. The post highlighted that Microsoft’s investment will span over the next three years and focus on the development of the AI ecosystem in the region.

Microsoft $MSFT today announced plans to invest $2.7 Billion in Brazil 🇧🇷 over the next 3 years to foster the development of an artificial intelligence ​​ecosystem – SA

— Evan (@StockMKTNewz) September 26, 2024

According to a study commissioned by the Satya Nadella company, widespread AI adoption in Brazil could boost the country's GDP growth by 4.2 percentage points by 2030.

Brazil currently has a population of more than 220 million people, with at least 177 million internet users as of 2023. According the Statista, the number of internet users in Brazil is projected to grow by 34.2 million between 2024 and 2029.

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Why It Matters: While Microsoft is advancing in Brazil, Musk’s companies, particularly X and Starlink, are encountering substantial legal and operational hurdles.

Access to X has been blocked in Brazil since late August 2024, following the company’s failure to comply with orders to block certain accounts accused of spreading misinformation and hate speech.

This decision came after a protracted dispute between Musk and Justice Alexandre de Moraes.

Brazil’s Supreme Court has now also unfrozen Musk’s companies’ bank accounts after they transferred approximately $3.3 million to cover fines owed by X.

X is now seeking to restore its services in Brazil by appointing a legal representative and complying with other court orders.

Previously, Brazilian President Luiz Inácio Lula da Silva also criticized Musk’s ideological stand and stated, “The world is not obliged to put up with Musk’s far-right ideology just because he is rich.”

Photo Courtesy: Shutterstock.com

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.