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Robinhood acquires AI investment research platform Pluto

In a strategic leap towards enhancing its data-driven investing services, Robinhood Markets, Inc. has acquired Pluto Capital Inc., an AI-powered investment research platform. This acquisition aims to integrate Pluto’s advanced AI capabilities, offering users personalised investment strategies and real-time insights.

  • Editorial Team
  • July 3, 2024
  • 3 minutes

Robinhood Markets, Inc. has announced the acquisition of Pluto Capital Inc., an AI-powered investment research platform. This strategic move aims to leverage Pluto’s advanced AI capabilities to enhance Robinhood’s data-driven investing services.

By integrating Pluto’s technology, Robinhood seeks to offer personalised investment strategies and real-time insights, thereby optimising user portfolios and democratising access to sophisticated financial tools.

Robinhood, known for its disruptive approach to trading and investment, has been actively seeking ways to enhance its service offerings. This move follows Robinhood’s acquisition of Bitstamp, a global cryptocurrency exchange, indicating a broader strategy to enhance its data analytics and AI-driven decision-making capabilities.

AI capabilities and user benefits

Pluto’s AI models are designed to process and interpret vast amounts of market data efficiently. These models utilise large language models (LLMs) to analyse real-time personal and global financial data, enabling quicker identification of market trends and opportunities. This advanced data analysis provides Robinhood users with a competitive edge in the market.

One of Pluto’s standout features is its ability to customise investment strategies based on individual user profiles. By analysing factors such as risk tolerance, investment goals, and historical behaviour, Pluto’s algorithms generate highly personalised recommendations. This ensures that each investor’s portfolio aligns perfectly with their unique financial goals and preferences.

Additionally, Pluto offers real-time updates and insights, allowing investors to make informed decisions swiftly and confidently. The AI-driven analysis ensures continuous portfolio optimisation, balancing growth and risk according to individual preferences.

Mayank Agarwal, Robinhood’s VP of Engineering, emphasised the strategic fit of Pluto’s AI expertise with Robinhood’s mission to democratise finance. “We are thrilled to welcome Pluto and Jacob Sansbury to Robinhood. They have built an impressive platform that is highly regarded in the financial services industry. Importantly, their expertise in artificial intelligence coupled with a mission-aligned passion to democratize finance will complement our team’s effort to bring AI powered tools to our customers,” said Agarwal.

The integration of Pluto’s technology into Robinhood’s platform is expected to significantly enhance its data analytics capabilities. This will enable Robinhood to offer tailored investment recommendations, furthering its commitment to providing accessible and sophisticated financial services to a broader audience.

“Robinhood is the ideal destination to build products that democratize access to financial services like wealth management and financial planning through state of the art AI. I look forward to innovating at the company which has inspired me and so many others,” said Jacob Sansbury, CEO of Pluto.