SAO PAULO (AP) — Brazil's government said on Wednesday it filed a lawsuit in a federal court against Discord, the popular platform for gamers to communicate online, seeking damages of 500 million reais (about $97 million) for the company's alleged failure to protect children online.
The move comes in the wake of a July suicide case linked to the platform. Earlier this month, Brazil’s government pushed Discord to suspend its live broadcasts in relation to the incident.
The Solicitor-General's office for President Luiz Inácio Lula da Silva said in a statement the damages it is seeking from Discord are due to alleged collective psychological harm it has allowed.
Discord in Brazil said in a statement that the move by the country’s government is “disproportionate” and “does not accurately reflect Discord’s approach to safety and compliance with Brazilian law.”
Brazil’s government’s 25-page long lawsuit, which was obtained by The Associated Press, says there are severe gaps in its age-verification systems and user safety protections.
The company has committed "direct violations to a number of obligations and protective norms of Brazilian law, regarding the special protections and safety of vulnerable groups, including children and teenagers,” Brazil's Solicitor-General's office said.
The office is also asking the court to order Discord to immediately strengthen parental controls, expand cooperation with local law enforcement, and deploy automated tools to detect and remove dangerous content.
The filing also notes that Discord faces similar legal pressure globally, including active lawsuits in U.S. states like Texas, Nevada and New Jersey.
Lula, who is seeking reelection in October, and Brazil's Supreme Court have tried to regulate the use of the internet by minors, with mixed results so far, at a moment when countries, including Australia, Canada and Indonesia, are undertaking similar efforts.
Brazil’s first lady Rosângela Lula da Silva, known as Janja, said on Aug. 6 that the platform should be taken offline, citing the suicide case. Five teenagers were arrested in connection with the death, according to Brazil’s justice ministry.
Discord has more than 90 million active daily users worldwide, according to its website.
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Brazilian President Luiz Inacio Lula da Silva adjusts his hat during a Soldier's Day ceremony at Army headquarters in Brasilia, Brazil, Tuesday, Aug. 25, 2026. (AP Photo/Eraldo Peres)
Nvidia's latest quarterly results once again blew past Wall Street's expectations as revenue for the computer chip company's high-end artificial intelligence chips soared, the latest sign that AI infrastructure spending remains strong.
The company reported on Wednesday net income of $59.69 billion, or $2.46 per share, for the May-July period. That compares to net income of $26.42 billion, or $1.08 per share, in the same quarter last year.
Excluding certain items, earnings were $2.22 per share, well above the $2.09 per share consensus forecast by Wall Street analysts, according to FactSet.
Revenue more than doubled from a year earlier to $96.22 billion, surpassing analysts’ average forecast of $92.27 billion.
“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” said CEO Jensen Huang in a statement.
The Santa Clara, California, company's results have regularly cleared the bar set by analysts in the past three years, often by a wide margin, since Nvidia’s high-end chips emerged as AI’s best building blocks.
Along with higher profit and revenue, however, Nvidia’s operating expenses surged 55% to $8.41 billion.
For the current quarter, Nvidia forecast revenue of about $108 billion. Analysts are forecasting $104.86 billion.
If Nvidia hits its revenue target for the August-October period, it will translate into a roughly 89% increase from last year — an indication that Nvidia’s phenomenal growth rate is still accelerating. The company said it’s not assuming any data center compute revenue from China in its outlook.
Nvidia expects to grow its revenue in its fiscal year ending January 2028 by about 70%, citing surging demand for its AI-powering chips. In fact, the company's growth outlook would be closer to double, based on its customers' own forecasts, if it weren't for challenges in sourcing enough supplies to meet the chip production demand, noted CFO Colette Kress in a call with Wall Street analysts.
Huang also emphasized the supply limitations the company is grappling with.
“Our entire supply chain is challenged,” he told analysts. “At this point we have supply for 70%. ... Our demand is much higher than that.”
Nvidia’s data center segment, which includes its AI data centers and factories business, as well as chip demand from hyperscalers — operators of huge cloud-computing data centers such as Amazon, Meta and Google — reported revenue of $89 billion, up more than twofold from a year earlier.
Capital spending by the top five hyperscalers is expected to reach nearly $800 billion this year and $1.3 trillion in 2027, Kress noted.
On Wednesday, Nvidia and Amazon Web Services announced a plan to deploy 2 million additional Nvidia graphic processing units, and will incorporate Nvidia chips to power its fleet of warehouse robots.
Kress also said the company expects that its computer processing unit revenue will more than double in fiscal 2028, “positioning us as one of the world’s leading server CPU suppliers.”
Nvidia’s shares rose 4.1% in after-hours trading following the earnings call. The stock ended the regular trading session 1.6% lower and is up 12.4% so far this year.
The company’s edge computing segment, which includes chips bringing AI-powered features to computers, game consoles and robotics, among others, posted revenue of $7.2 billion, up 27% from the same period last year.
Despite the stellar results and still-rosy outlook, many investors worry about a jarring comedown after a three-year boom that has seen Nvidia’s market value soar from $400 billion at the end of 2022 to roughly $5.2 trillion now.
While AI has powered stock market gains and U.S. economic growth in recent years, there’s been growing skepticism about whether AI will justify the trillions of dollars that are being spent to develop the technology.
The AI industry is also increasingly facing pushback amid objections to the expansion in data centers and fears that the speed with which AI is being adopted could lead to widespread job losses for many Americans.
FILE - Jensen Huang, president and CEO of Nvidia, waits for a groundbreaking ceremony for an expansion of Coherent's manufacturing facility to begin on June 16, 2026, in Sherman, Texas. (AP Photo/Jeffrey McWhorter, File)
