Insider Brief
- Itaú Unibanco agreed to acquire Brazilian AI startup NeoSpace for BRL 2.93 billion, or about $588.6 million, after working with the company for nearly two years on AI applications.
- NeoSpace develops foundation models trained on Itaú’s proprietary data and has worked with the bank on credit, customer relationship management, fraud prevention and personalized financial services.
- NeoSpace will continue operating autonomously after the acquisition, which remains subject to regulatory approvals, with Itaú paying an initial installment at closing and the remainder over five years.
Itaú Unibanco has agreed to acquire Brazilian artificial intelligence startup NeoSpace for BRL 2.93 billion, or about $589 million, expanding the bank’s in-house AI capabilities after working with the company for nearly two years.
According to a material fact filed with the Securities and Exchange Commission, Itaú will acquire all shares of NeoSpace A.I. Technologies Ltda., a Brazilian startup that develops foundation models trained on large datasets. The transaction remains subject to regulatory approvals and other closing conditions.
Itaú said the acquisition will allow it to combine NeoSpace’s AI capabilities with the bank’s data and financial-services expertise to develop more specialized proprietary models for use across its products and services.
NeoSpace has been developing AI models trained on Itaú’s proprietary data for nearly two years and the companies have already worked together on applications in credit, customer relationship management and fraud prevention The bank said those models are being used to apply generative AI across its operations, including personalized financial services and credit management.
The deal also supports Itaú’s development of ia.i, its generative AI assistant that the bank indicated it plans to use the technology to provide more personalized customer interactions and financial services.
NeoSpace will continue operating autonomously after the acquisition, according to the filing. Its management structure will remain separate from Itaú and the startup’s existing team will be retained.
Itaú will pay BRL 2.925 billion for the company, with one installment due when the transaction closes and the remainder paid over five years subject to certain conditions. The filing did not provide a breakdown of the individual payments. Closing requires approval from Brazil’s antitrust regulator, known as CADE, and the Central Bank of Brazil, along with other customary conditions.
