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Rio's IplanRIO Admits Model Used Open-Source Code, Faces Fund Misuse Allegations

GateNews
AI Industry News
According to Beating, Brazil's Rio de Janeiro IplanRIO recently admitted that its Rio-3.5-Open-397B large language model was not self-developed as claimed, but instead derived from merging open-source projects Nex-N2 Pro and Alibaba's Qwen 3.5. The official statement acknowledged uploading an intermediate baseline version instead of the final trained weights, attributing the error to "operational mistakes." IplanRIO claimed the actual final model weights were lost and cannot be recovered. The city government had allocated 500,000 Brazilian reals (approximately $100,000) for model training, yet the delivered weights were unmodified open-source merges. The Rio-3.5 model page has been removed from Hugging Face.
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