Investing app Robinhood is adding more AI capabilities for investors with the acquisition of AI-powered research platform Pluto Capital, Inc., announced on Monday. The acquisition of Pluto will give Robinhood additional tools to identify trends and investment opportunities more quickly, guide users' investment strategies and provide real-time portfolio optimization, according to the company.
Pluto founder Jacob Sansbury will join Robinhood upon the completion of the deal, terms of which were not disclosed.
At Robinhood, Sansbury will be tasked with accelerating the trading app's adoption of AI technology, including using Pluto's data analytics capabilities to process and interpret market data using LLMs (large-scale language models) that have real-time access to global financial data and users' personal data. Robinhood believes this will help investors capitalize on new opportunities more quickly.
Additionally, Pluto will help Robinhood customize investment strategies for individual users by analyzing risk tolerance, investment goals, past behavior, and more to provide more personalized recommendations.
Robinhood also claims that the Pluto integration will provide investors with real-time updates and insights, helping them make faster, more informed decisions and optimize their portfolios for better results.
Founded in 2021, Pluto has raised $4 million across multiple seed funding rounds at a pre-money valuation of $12 million, according to Pitchbook. The startup was backed by investors including at.inc/, Switch Ventures, Caffeinated Capital, and Maxime Seguineau.
“We're thrilled to welcome Pluto and Jacob Sansbury to Robinhood,” said Mayank Agarwal, vice president of engineering, in a statement released by Robinhood. “They've built an incredible platform that's well-respected in the financial services industry. Importantly, their expertise in artificial intelligence and passion for our mission to democratize finance complements our team's efforts in providing AI-powered tools to our customers,” he added.
“Robinhood is the ideal place to develop products that democratize access to financial services like asset management and financial planning through cutting-edge AI,” Sansbury said. “I look forward to innovating at this company that has inspired me and so many others,” he said.