🌐 Sun, samba ... and servers?

This week, The Brazilian Report touches down in Rio de Janeiro, where reporter Isabela Cruz and I will be covering — and taking the stage to moderate — panels on the future of AI and venture capital in Brazil and across Latin America.

IN THIS ISSUE

• Paes makes big AI promises at opening of Web Summit Rio

• Lula faces a difficult decision regarding a member of his cabinet

• Chart of the week: The increase in rural conflicts around Brazil

Web Summit Rio 2025 kicks off with big bets on AI and urban innovation

The third edition of Web Summit Rio opened Sunday with a bold promise from Mayor Eduardo Paes: to transform Rio de Janeiro into Latin America's artificial intelligence capital by building the region’s largest data center hub — the “Rio AI City” — at the Olympic Park.

• The announcement came as the city also secured its future as Web Summit’s Latin American home through 2030, reinforcing Rio’s ambition to become a global innovation player.

👉 Why it matters. Rio is betting heavily on tech and urban revitalization to reshape its economic future, following the model that helped Lisbon emerge as a European tech hub after hosting Web Summit. 

Details. Mayor Eduardo Paes set out his vision for Rio’s future during his opening remarks at Web Summit Rio’s kickoff on Sunday:

• Rio AI City: A 1.8-gigawatt AI campus powered entirely by clean energy, expandable to 3 GW by 2032. It promises zero-latency data transmission and unlimited water supply — aiming to attract supercomputers, startups and tech giants alike.

• Porto Maravilha revival: The city's historic port area will be linked to Rio AI City through a massive urban project, "Mata Maravilha," blending tech hubs, green spaces, residential towers, hotels and entertainment venues.

• Porto Maravalley: A tech district hosting 400 startups in revamped warehouses, with tax breaks for new tech firms and new urban rules encouraging mixed-use development.

By the numbers. With major players like Microsoft, Nvidia, OpenAI and TikTok attending, and more than 34,000 people expected through Wednesday, Web Summit Rio 2025 is set to be the city's biggest yet. 

• Officials expect this year's event alone to inject more than BRL 170 million (USD 31.5 million) into the local economy, with a projected BRL 1.8 billion impact by the end of the decade. But the jury is still out on whether Rio will be able to sustain momentum in tech beyond the event.

Eyes of the world. Web Summit is part of Paes’s strategy to turn Rio into one of the world’s most prized destinations. Last year, he brought Madonna for a major free concert on Copacabana Beach, which he’ll try to one-up this Saturday when Lady Gaga plays the same venue. 

A MESSAGE FROM THE BRAZILIAN REPORT

The Brazilian Report at Web Summit Rio

The Brazilian Report is keeping its streak alive, attending this year’s Web Summit Rio as we have since the event’s debut in Latin America. This time, we’ll also be moderating four panels.

• Monday, 11:15 am: Editor-in-chief Gustavo Ribeiro will sit down with Richard Zeiger (MSW Capital) and Rodrigo Comazzetto (Crescera Capital) to delve into the question every founder wants to know the answer to: What are investors looking for?

• Monday, 12:35 pm: Reporter Isabela Cruz will moderate a panel discussion featuring Tamara Steffens of Thomson Reuters Ventures and Caio Moriani of Embraer Ventures, focusing on the intersection of corporate venture capital and innovation.

• Monday, 2:55 pm: Editor-in-chief Gustavo Ribeiro will join David Shim, CEO of Read AI, for a discussion on how workers perceive the role of artificial intelligence in the workplace. 

• Wednesday, 2:10 pm: Editor-in-chief Gustavo Ribeiro will moderate a discussion with Aline Oliveira (Traive), Miguel Burger-Calderon (BFF), and Fernando Cabral (Djassi Africa). The panel will examine whether AI is truly reshaping venture capital or simply fueling another hype cycle.

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