IPython notebook uses MathJax to render LaTeX inside html/markdown. Just put your LaTeX math inside $$
.
$$c = sqrt{a^2 + b^2}$$
Or you can display LaTeX / Math output from Python, as seen towards the end of the notebook tour:
from IPython.display import display, Math, Latex
display(Math(r'F(k) = int_{-infty}^{infty} f(x) e^{2pi i k} dx'))
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