Brazil's Itau agrees to buy AI startup NeoSpace for $589 million

Brazilian lender Itau said on Monday it had entered an agreement to acquire all shares issued by artificial intelligence startup NeoSpace AI.

Under the deal, the bank will pay 2.925 billion reals ($589 million), with part due at closing and the balance deferred over five years, it said in a securities filing.

NeoSpace, which specializes in large AI models, has worked with Itau for nearly two years, according to the filing. The deal is subject to regulatory approval and customary closing conditions.

($1 = 4.9654 reais)