Robinhood buys Pluto Capital to bring AI advice to retail investors
Robinhood Markets Inc. said on Monday it acquired Pluto Capital Inc., a research platform best known for its personalized AI-powered investment strategies and real-time analytics. The acquisition will bring “a new era of intelligent, data-driven investing” to users of the Robinhood app, it said.
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Pluto founder and CEO, Jacob Sansbury, is joining Robinhood as part of the deal. The 24-year-old, who previously led publisher and game developer SDK tools at Nvidia, will help grow Robinhood’s “product roadmap and integrate AI-powered capabilities across the platform.”
Robinhood says Pluto ‘democratizes finance’
While the terms of the transaction were not made public, Robinhood’s vice president of engineering, Mayank Agarwal, described Pluto as having built “an impressive platform that is highly regarded in the financial services industry.” In a statement, Agarwal added:
“Their [Pluto] 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.”
Robinhood has grown its offerings in recent years to include cryptocurrency trading, retirement accounts, and credit cards. Despite the expansion, the Menlo Park, California-based firm continued to focus on average retail investors. Pluto can help investors by analyzing real-time market data and a user’s portfolio to provide personalized investment advice.
“Pluto’s advanced data analytics capabilities can process and interpret market data more efficiently by providing state-of-the-art large language models (LLMs) with access to real-time personal and global financial data,” Robinhood said. “This means quicker identification of trends and opportunities, providing investors with a competitive edge.”
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It said Pluto’s algorithms tailor investment strategies to user profiles by analyzing factors such as risk tolerance, investment goals, and historical behavior. The AI uses this information to provide personalized advice.
Shares of Robinhood closed 0.35% higher at $22.79 in Nasdaq stock market trading on Monday. Over the past 52 weeks, the stock has reached a high of $24.28 and a low of $7.91, according to Google Finance.
Cryptopolitan Reporting by Jeffrey Gogo
