Robinhood, the popular investment app, is enhancing its AI capabilities for investors through the acquisition of Pluto Capital, Inc., an AI-powered research platform, as announced on Monday. With this acquisition, Robinhood aims to provide users with tools for quicker trend identification, guidance on investment strategies, and real-time portfolio optimization.
Jacob Sansbury, the founder of Pluto, will be joining Robinhood post the deal’s closure. The specific terms of the deal have not been disclosed.
Following the acquisition, Sansbury will play a crucial role in integrating AI technologies into Robinhood, utilizing Pluto’s data analysis capabilities to interpret market data using large language models with real-time access. This will enable investors to seize new opportunities promptly.
Furthermore, Pluto will assist Robinhood in personalizing investment strategies for individual users by analyzing factors like risk tolerance, investment goals, and historical behavior to offer tailored recommendations.
Robinhood asserts that investors will benefit from real-time updates and insights through Pluto’s integrations, facilitating quicker decision-making and portfolio optimization.
Pluto, founded in 2021, raised $4 million in seed funding rounds, valuing the company at $12 million (pre-money). The startup received backing from investors like at.inc/, Switch Ventures, Caffeinated Capital, and Maxime Seguineau.
Mayank Agarwal, VP of Engineering at Robinhood, expressed excitement about the acquisition, stating, “We are thrilled to welcome Pluto and Jacob Sansbury to Robinhood. Their expertise in AI aligns with our mission to democratize finance, and we are eager to bring AI-powered tools to our customers.”
In response, Sansbury shared his enthusiasm, saying, “Robinhood provides an ideal platform to democratize financial services through cutting-edge AI. I am excited to innovate at a company that has inspired me and many others.”
