LatAm Tech Weekly

#185 - Powered by Nasdaq: Web Summit 2025, AI Index Report 2025, U.S. vs China debate, deals of the week... and much more!

Weekly writing about what is happening in LatAm tech. By day, I work at Itau BBA advising mid-sized technology companies in their next strategic transaction. By night, I am reading and learning about technology in general (now, with a focus on AI). During the weekends, I’m writing the LatAm Tech Weekly.

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Happy Sunday!

Rio de Janeiro — proudly my hometown — once again hosted Web Summit, bringing together over 30,000 people: founders, funders, corporates, and curious minds. For the third year in a row, I had the chance to be part of this incredible event — moderating panels, delivering keynotes, and connecting with the ecosystem. And for the third year in a row, my employer, Itaú Unibanco, was a proud sponsor.

That said, this year felt different. It pushed me out of my comfort zone. While I’m used to speaking on panels and sharing ideas alongside amazing people, I had never delivered a solo keynote on the Web Summit stage. Up until the Sunday before the event, I thought I was doing just that — another panel (I did three last year!). Panels require very little prep — you show up, bring your perspective, and engage in dialogue.

But then, as I was sending out this very newsletter after an intense week, I got a message from the Growth Stage organizer asking if I’d be willing to take on a keynote instead — solo, on the venture capital landscape in Latin America. She was kind and reassuring, saying that if I wasn’t comfortable, we could stick with the original plan. I paused for 15 minutes, completely exhausted, and then said yes…

Why? Because it was outside my comfort zone. And that’s exactly why I needed to do it.

Sure, I was tired. Sure, I had to build a presentation at the last minute. But I pulled through, working late into Sunday and Monday night to be ready for the 11 a.m. slot on Tuesday.

I really believe that doing things for the first time — especially things that scare you a little — is how you grow. A panel would have been familiar. The keynote? It was something new. Looking back, I’m proud of how it went. Could it have been better? Absolutely. I’m always my own toughest critic. But I liked the feeling of being a little nervous, of holding the stage on my own.

And now… I’m ready for the next one.

Thank you, Web Summit, for the challenge. I hope to be back again next year.

Before we dive in — a brief pause for Warren Buffett, who officially stepped back from active leadership during Berkshire’s annual meeting this Saturday. An era quietly closed.

The main theme at Web Summit Rio? (No surprise here.) Artificial Intelligence.
There’s no getting around it — AI is here to stay. I’ve tried to steer conversations toward other topics, but somehow, everything keeps circling back to AI.

One particularly interesting read this week was the AI Index Report 2025, published by Stanford University's Institute for Human-Centered Artificial Intelligence (HAI). It offers a deep, data-driven look at global AI trends, investment patterns, and the technology's impact across research, industry, policy, and society. This is the report’s eighth edition — and while it’s over 400 pages long, I’ll admit I didn’t read every word. Like most things these days, I started with a ChatGPT summary to see if it was worth diving into (spoiler: it was).

After skimming the full picture, I focused on the sections that caught my attention the most — and I’ll share those highlights below.

If there's one word to summarize the AI landscape in 2024, it's acceleration. Investment is up, adoption is widespread, and AI is becoming a strategic priority for businesses and governments alike:

• Record Surge in AI Investment: Global private AI funding hit $252.3B in 2024 — up 44.5% from 2023, ending a two-year stagnation. That’s 14x growth in the past decade. The U.S. alone invested $109B, nearly 12x China’s figure.

• Generative AI’s Meteoric Rise: GenAI drew $33.9B in funding, now accounting for over 20% of total AI investment. Investment in the sector grew 8.5x since 2022 — spanning LLMs, video generation, and image synthesis tools. Businesses aren't just experimenting anymore; they're integrating GenAI into real workflows.

• National Bets Are Getting Bigger: Governments are putting serious capital behind AI. Canada committed $2.4B, China invested $47.5B in chip infrastructure, and Saudi Arabia launched Project Transcendence, a $100B AI moonshot.

• Regulations Catch Up: The U.S. more than doubled its AI-related laws (59 in 2024), and globally, 75 countries increased AI legislation by over 20%. The policy wave is no longer just EU-driven — it's global.

• Businesses Are All In: According to McKinsey, 78% of companies used AI in at least one function in 2024 (vs. 55% in 2023). GenAI use more than doubled, from 33% to 71%. Yet, most companies still report modest gains (sub-10%) in productivity or cost savings — indicating there's room to improve application depth.

• AI in the Real World: 223 AI-enabled medical devices were approved by the FDA last year (just 6 in 2015). Waymo now runs 150K+ autonomous rides per week in the U.S., while Baidu’s Apollo Go is expanding across China. The tech is quietly reshaping everyday life.

• Public Perception Split: Optimism about AI varies wildly. In China, 83% of people are optimistic; in the U.S., just 39%. Yet even in skeptical regions like Germany and France, sentiment improved in 2024 — a sign that people may be warming up to AI’s impact.

• Cost Drops, Access Rises: The cost of running GPT-3.5-level AI dropped 280x in two years. Hardware is cheaper (down 30% annually), and energy efficiency is up (40% YoY). Translation: AI is more accessible than ever — even for smaller players.

• Science Gets a Boost: AI helped win two Nobel Prizes (deep learning in protein folding) and a Turing Award (reinforcement learning). Scientific discovery may be the next frontier where AI truly excels.

• But Reasoning Is Still Hard: Despite progress, complex reasoning remains AI's Achilles’ heel. Benchmarks like GPQA and SWE-bench show gains, but models still struggle with consistency in logic-heavy or high-stakes situations.

• Responsible AI Still Lagging: Incidents are rising, yet many companies lag in deploying proper safeguards. New frameworks like HELM Safety and AIR-Bench aim to fill the gap, but we're still in the early innings of enforcing transparency, fairness, and reliability.

The U.S. vs. China Debate

Moving on…

What I think makes this newsletter valuable is exactly this: I read, I listen, and I try to connect the dots. If I were just summarizing a 400-page report, that would be relatively easy — especially with AI. But the real challenge (and joy) is weaving together multiple perspectives to understand where the story might be more layered than it first appears.

Take the AI Index Report 2025, for instance. It presents a clear view of U.S. dominance: $252 billion in global AI investment, $109 billion of that from the U.S., and a commanding lead in model production with 40 major releases. On paper, it looks like a runaway lead.

But after listening to the latest episode of BG2Pod, I came away with a more nuanced take. Bill Gurley remarked, “We’re slowing ourselves down with over-regulation and protectionism, while China is ramping up. It’s not clear that the current U.S. approach is helping us win.” That line stuck with me — especially as export controls and regulatory friction increasingly shape how fast and freely innovation can move. Gurley also raised a deeper question: what does ‘winning’ in AI even mean? We tend to frame things in zero-sum, finite terms — like sports or chess — but AI, arguably, is an infinite game.

As James P. Carse writes in Finite and Infinite Games: “A finite game is played for the purpose of winning; an infinite game for the purpose of continuing the play.” That changes the lens completely. If AI is an infinite game — one that rewrites itself as it unfolds — maybe the goal isn’t to outpace others, but to sustain progress, adaptability, and meaningful impact.

Industry leaders are voicing similar concerns. NVIDIA CEO Jensen Huang, during a recent visit to Capitol Hill, said bluntly: “China is right behind us.” He warned that continued export controls on AI chips — while well-intentioned — could inadvertently weaken U.S. competitiveness and revenues, accelerating China’s push to build self-sufficient alternatives. “If we are deprived of the China market, we don’t have another China,” he added, underscoring how global interdependence still matters — even in a race as strategic as AI.

That same theme came up in a powerful opinion column by Thomas Friedman in The New York Times, titled “I Saw That Future, and It Wasn’t in America.” After a recent trip to China, he described a tech ecosystem that felt “faster, more audacious, and more mobilized” than anything happening in the U.S. His takeaway: cities like Shenzhen aren’t waiting for permission — they’re building. And they’re doing so with a level of urgency, direction, and public-private coordination that’s difficult to replicate in more decentralized systems.

So yes, the U.S. may lead in capital and model count. But leadership in AI isn’t just about who has the biggest budget or the most releases. It’s also about velocity, coherence, and execution. And when you account for those factors — especially the pace at which China is moving — the lead might not be as secure as the report suggests…

General news:

• Hugh Forrest, the longtime creative force behind SXSW Interactive, was dismissed amid broader leadership cuts. Many view his departure as the end of an era for the festival, now under P-MRC’s control. 🇺🇸

• Brazil is rolling out a tax incentive program to attract data center investments, offering federal exemptions on IT capital goods. Finance Minister Fernando Haddad is pitching Brazil’s clean energy advantage to tech giants in Silicon Valley. 🇧🇷

• Brazil’s government has advanced the launch of a new payroll loan portability system to May 6, aiming to reduce interest rates and promote competition in consumer credit. 🇧🇷

• Web Summit will remain in Rio de Janeiro through 2030, with the city planning to build “Rio AI City” to become Latin America’s largest data center hub. 🇧🇷

• Plug and Play announced a new partnership with Londrina to develop a govtech and innovation hub, including a $50M fund for Latin American startups. 🇧🇷

• Bitso will discontinue the Bitso Card in Mexico on May 26, shifting its focus toward long-term financial tools like savings and investments. 🇲🇽

• 99Pay surpassed R$3B in personal loans, reaching 790,000+ contracts, mostly with lower-income female users in Brazil. 🇧🇷

• M&A activity in Brazil rebounded in Q1 2025, with volumes more than doubling year-over-year, according to FZF Capital. 🇧🇷

• Yape launched a payment distribution tool to help businesses send money instantly to over 17M users without a traditional bank account. 🇵🇪

• Riqra surpassed $1B in B2B transactions and expanded its operations in Chile and Central America. 🇵🇪

Deals:

• Supra received a second strategic investment from Citi to scale its cross-border payments platform, aiming to surpass $1B in volume. 🇨🇴

• DoorDash submitted a £2.7B non-binding offer to acquire Deliveroo, following Prosus’ recent bid for Just Eat. 🇬🇧

• Credituz raised R$31M to expand AI-driven real estate loans targeting marginalized communities. 🇧🇷

• LG Lugar de Gente, an HR tech leader in Brazil, is exploring a R$1.5B sale or capital raise after posting R$450M in 2023 revenue. 🇧🇷

General news:

• Crowdfunding in Brazil hit R$790M in Q1 2025, already 55% of last year’s total, driven by strong activity on CVM-regulated platforms. 🇧🇷

• OpenAI launched a shopping feature inside ChatGPT to let users search, compare, and get AI-curated product recommendations—posing a new challenge to Google. 🇺🇸

• Claro is investing R$1B to grow its multicloud services and launch a Digital Solutions Hub tailored to Brazilian businesses. 🇧🇷

• Itaú CEO Milton Maluhy said at Web Summit Rio that the bank has modernized 70% of its core and is now focused on scaling AI-powered products. 🇧🇷

• Open Finance in Brazil has enabled R$18B in credit since launch, with 50 million users benefiting from smarter, data-driven financial services. 🇧🇷

• Meta launched Meta AI, a standalone voice-activated app ahead of its first LlamaCon conference, pushing further into consumer-facing AI. 🇺🇸

• Trela opened a new São Paulo distribution center 9x larger than the previous one, supporting over 500% GMV growth and 10x delivery capacity. 🇧🇷

• Spin by Oxxo and Félix Pago partnered to enable instant, no-fee remittance transfers from the U.S. via WhatsApp. 🇲🇽

• Jeeves expanded into travel tech with a virtual card solution for business travel, starting in Brazil, where it grew 250% in GTV. 🇧🇷

• CloudWalk launched Jim, an AI agent for its 4M+ InfinitePay users, helping them set pricing, marketing, and cash flow strategies. 🇧🇷

Deals:

• Clara raised $80M—half equity and half growth-linked capital from General Catalyst—to fuel LatAm expansion and target large enterprises. 🇲🇽

• Mastercard invested $300M for a 3% stake in Corpay’s B2B cross-border payments unit, valuing it at $10.7B. 🇺🇸

• Paygoal launched Apitax, a regional tax calculator that simplifies digital payments compliance across Latin America. 🇦🇷

• Vexi secured a credit line of up to 300M pesos with Banco Covalto to expand card offerings for unbanked users. 🇲🇽

• doc9 raised $35M from Headline to scale its AI-powered legal platform, Whom, which focuses on digital certificates. 🇧🇷

• Akua launched a cloud-native payment processor with AI and Visa/Mastercard integration, starting in Colombia and expanding across LatAm. 🇨🇴

• Kiwi raised $10M in seed funding to transform healthcare financing in Latin America, starting in Peru. 🇵🇪

General News:

• Lastro pivoted from property management to AI with “Lais,” a virtual real estate assistant on WhatsApp that has boosted client conversion rates by up to 60%. 🇧🇷

• Dataprev and Drumwave are piloting a digital wallet to let Brazilians monetize personal data, starting with payroll loan contracts. 🇧🇷

• RappiPay launched a feature for cash top-ups at 14,000+ Puntored locations across Colombia, reinforcing its commitment to financial inclusion. 🇨🇴

• Central Bank of Brazil announced that its LIFT Lab has accelerated 78 projects over 8 years, drawing R$400M in private investments and advancing green finance via LIFT Data. 🇧🇷

• Duolingo launched 148 new AI-developed language courses, doubling its portfolio while navigating debates around quality and automation in education. 🇺🇸

Deals:

• Altis raised new debt and plans to 10x its embedded lending volume for vehicle dealerships by year-end, after reaching R$6M in originations. 🇧🇷

• iFood acquired Opdv, Saipos, and 3S Checkout to build a full-stack ecosystem for restaurant operations beyond delivery. 🇧🇷

• Zapia raised $7.25M, bringing its total to $12.35M, to scale its AI-powered WhatsApp assistant now used by 3.5M+ people across LatAm. 🇧🇷

• Credicuotas secured $33M through its Series XII bond offering to strengthen consumer lending amid Argentina’s credit recovery. 🇦🇷

• IDX Brasil raised R$1M in pre-seed funding at a R$10M valuation to grow its real estate platform and expand nationwide. 🇧🇷

• Fin-X raised R$14M in a pre-seed round led by Atlantico to expand its AI platform, which manages over 1M surgeries annually in Brazil. 🇧🇷

• Speedbird Aero raised €3.5M from Portugal’s Lince Capital to scale commercial drone operations and enter the U.S. and European markets. 🇧🇷

General news:

• Latin America saw a 40% increase in AI adoption in 2024, led by Brazil and Argentina. Use cases span healthcare (e.g., Alice's AI triage system) and agritech (e.g., Kilimo’s water-saving tools), showing the region’s pragmatic and impact-oriented approach. 🇧🇷🇦🇷

• Visa launched stablecoin-based payments in countries like Ecuador, Peru, and Colombia, leveraging Bridge’s infrastructure to push forward crypto integration in daily transactions. 🇪🇨🇵🇪🇨🇴

• Aestro AI introduced agentic AI systems to automate debt recovery across Latin America, aiming to streamline collections with self-operating financial bots. 🇲🇽🇧🇷

• Brazil is marketing its renewable energy advantage—nearly 90% clean power—to attract global AI infrastructure and data center investments. 🇧🇷

• OLADE projects that AI will account for 5% of electricity use in Latin America by 2035, emphasizing the need for long-term energy sustainability plans. 🇱🇨

• Gamescom Latam 2025 will return to São Paulo with a larger venue and earlier dates. The event will spotlight Latin American game developers and welcome brands like Steam and The Pokémon Company. 🇧🇷

• MercadoLibre is considering relocating its corporate domicile from Delaware to Texas, citing tax benefits and shareholder flexibility. A vote is scheduled for June 17. 🇦🇷🇺🇸

General news:

• OLX Group named Lilian Ferraz as Chief Product Officer and Fabio Marcolino as VP of Data and AI. The appointments aim to accelerate tech-driven innovation and personalization. 🇧🇷

• Lopti, a startup founded by three lawyers from Simões Pires, launched an AI tool that summarizes and drafts contracts in minutes, cutting legal workload by up to 100 days. 🇧🇷

• Hiker Ventures, a VC firm with a private equity mindset, has R$50M under management and backs early-stage B2B startups with a hands-on approach and a focus on operational efficiency. 🇧🇷

Deals:

• UpMat Educacional raised R$1.5M in a seed round led by Potencia Ventures to scale its “Olympiads as a Service” model. The edtech impacted over 2M students in 2024 and plans to reach 3.5M in 2025 through competitions and teacher training. 🇧🇷

• Blips raised R$50M in its first funding round at a R$500M valuation to finance equipment for small businesses through a new financial arm issuing debentures and CDBs. 🇧🇷

You will see below all events in Tech to happen still on the first semester of 2025. I need to start to organize the second semester list. Tips? Send those my way!

• Itau BBA Fifth Annual Tech Summit

  Date: May 13

  Location: New York

  Description: An afternoon in New York with the main founders & funders of LatAm with panels and 1:1 sessions.

  INVITE ONLY

• APIX

  Date: May 15

  Location: São Paulo

  Description: Over the last decade, APIX has become one of the most anticipated global events focused on APIs and Integrations and its role on business strategies. A dynamic day filled with knowledge sharing and networking for professionals seeking new connections, global trends, partnership opportunities, and valuable technical and business insights regarding Open Finance, Partner Ecosystems, Legacy Modernization and Digital Experiences.

  MORE INFO SOON!!!

• VTEX Day

  Date: June 2-3

  Location: São Paulo

  Description: Considered one of the largest digital commerce events in the world, VTEX Day brings together big names in retail, including customers, suppliers and influencers, in an environment dedicated to innovation and knowledge. The event is an opportunity to explore solutions, discuss trends, strengthen connections and gain valuable insights to boost business.

  More info

• FEBRABAN Tech

  Date: June 10-12

  Location: São Paulo

  Description: FEBRABAN Tech is a fundamental event for the financial sector, bringing together banks, fintechs, financial institutions and experts to debate the innovations that are shaping the future of the market. Held annually by the Brazilian Federation of Banks (FEBRABAN), the event reached a record of 55 thousand visitors in 2024.

  More info

• Opinion - The New York Times - I Just Saw the Future, and it’s not in America (Thomas L. Friedman)

• Tariffs, Free Trade, Export Controls, H20 & Rare Earth Ban | BG2 w/ Bill Gurley & Brad Gerstner

“Never hate your enemies, it affects your judgment.” Michael Corleone, The Godfather