Why did OpenAI choose Brazil? A powerful wind blowing in the South American AI market

Imagine this: When people analyze a match at a passionate soccer stadium in South America, what if there were a smart AI assistant right next to them, organizing tactical data and suggesting strategies in real-time? It sounds like a story from the distant future, but Brazilian people can now experience this technology much closer to home. This is because OpenAI, a leader in the field of artificial intelligence (AI), has officially set up shop in Brazil, a key hub for the South American market.

Why does this matter?

You might think it is just adding another office. However, the establishment of a “local branch” by a tech company is a declaration that they will provide much deeper services to the users in that region. Brazil is moving beyond being just a country that consumes technology; it is now becoming a stage for building strong technological partnerships and a local AI ecosystem [Source 10]. This will serve as an important bridgehead to increase the speed of digital transformation across South America in the future and help the AI services we use better understand the language and cultural context of each region.

Simply put, they have dispatched a chef to the kitchen called Brazil

To understand why OpenAI has entered Brazil, let’s compare our daily lives to “cooking.” If existing AI services were finished dishes brought in from overseas, the establishment of a local branch is like dispatching a chef directly to a kitchen called Brazil and starting to use local ingredients.

Until now, OpenAI has delivered models developed at its U.S. headquarters to the rest of the world. However, as markets like Brazil grow, “locally customized recipes” that learn the nuances of local languages and are well-versed in region-specific information become necessary. Through this expansion, OpenAI plans to go beyond simply providing services and carry out projects that cultivate technical capabilities, such as AI education programs and scientific research support [Source 16]. It is like passing on professional recipes to novice chefs to raise the culinary level of the entire region.

Current situation: Explosive demand and intensifying competition

Brazil is already a very attractive land for OpenAI. In 2026, the number of ChatGPT users in Brazil almost doubled compared to the previous year, 2025 [Source 14]. Brazil is currently the country with the third-highest number of users in the world, following the United States and India, and is a massive market that ranks among the top five globally in terms of revenue [Source 14].

Keeping pace with this explosive demand, OpenAI began official business operations in Brazil on August 17, 2026 [Source 15]. Furthermore, there are moves to diversify their revenue model by introducing advertising features to ChatGPT for Brazil and Mexico in the future [Source 13]. In this process, market competition with rivals like Google and Anthropic is expected to become more intense [Source 12][Source 15]. Jason Kwon, OpenAI’s Chief Strategy Officer, expressed the view that restricting the international expansion of U.S. technology is not advantageous for the United States itself, signaling that this expansion is a strategically essential step [Source 16].

What will happen next?

Moving forward, more sophisticated AI tools will be provided to businesses and consumers in Brazil. OpenAI is expected to deploy close-knit strategies, such as strengthening the AI capabilities of local personnel and assisting Brazil’s scientific and technological research [Source 16]. This will likely result in OpenAI’s technology permeating more deeply when Brazilian companies develop or adopt their own AI software, thereby strengthening their market dominance [Source 10]. If the AI assistants we use begin to understand the complex proverbs of Portuguese or the unique business culture of Brazil much more naturally than they do now in the near future, it will be thanks to this expansion strategy that has just begun.

References

1. [Source 10] OpenAI Bets on Brazil: Why Should Your Startup Build Software Development Teams Here (https://www.machertecnologia.com.br/software-outsourcing-brazil-startups-latam-expansion-openai/)
2. [Source 12] OpenAI expands business operations to Brazil - Telecompaper (https://www.telecompaper.com/news/openai-expands-business-operations-to-brazil–1580490)
3. [Source 13] OpenAI will bring ChatGPT ads to Brazil and Mexico, and is adding a raft of fresh features (https://www.businessinsider.com/openai-ad-upgrades-chatgpt-ramps-up-global-reach-2026-8)
4. [Source 14] OpenAI avança no Brasil e diz que país está entre os cinco maiores mercados em receita (https://www.bloomberglinea.com.br/tech/openai-avanca-no-brasil-e-diz-que-pais-esta-entre-os-cinco-maiores-em-receitas/)
5. [Source 15] OpenAI lays groundwork to compete in Brazil (https://valorinternational.globo.com/business/news/2026/08/18/openai-lays-groundwork-to-compete-in-brazil.ghtml)
6. [Source 16] OpenAI anuncia expansão no Brasil em meio a tensões com governo Trump - Pravda PT (https://portuguese.news-pravda.com/brazil/2026/08/19/429046.html)