Robinhood Acquires Pluto Capital to Boost AI-Powered Investment Tools

Fintech firm Robinhood is growing its services after purchasing AI-powered research company Pluto Capital, Inc on Monday. The company announced the development on Monday, which seeks to provide its users of Robinhood with faster trend identification, efficiency in investing, and real-time portfolio optimization.

Mayank Agarwal, VP of Engineering, stated that “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,”

“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,” said Jacob Sansbury, founder of Pluto. He also added “I look forward to innovating at the company which has inspired me and so many others,”.

Co-founder of Pluto, Jacob Sansbury will become part of Robinhood once the deal is completed,d though the details have not been released. Sansbury’s position at Robinhood will be to bring AI to the trading app company using Pluto to analyze data and turn it into useful information using big language models that are updated with real-time global financial and user data. This will assist Robinhood investing in exploiting other opportunities in the market faster.

Trends Identification

Besides, it will assist Robinhood in identifying trends and creating specifications for personal use investment within the organization. In this case, based on the goals and objectives, risk-taking level, and performance history, Pluto is set to recommend appropriate investment plans to the Robinhood users.

There will also be real-time information dissemination to the investors, which will be made possible by integrations with Pluto. This will enable the users of Robinhood to make decisions of superior quality at a faster rate and align their portfolios in the best way possible.

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Since its inception in 2021, Pluto closed four seed funding rounds, by which the company was valued at $12m pre-money, according to sources from PitchBook. Among the backers of the startup were Switch Ventures, Caffeinated Capital and Maxime Seguineau.

Thus with the integration of AI in the procurement of Pluto, Robinhood shows that it is willing to incorporate AI in the delivery of investment services. In this regard, they are offering faster trend identification, individual investment management, and real-time portfolio management, thus entering into a competitive space of investment apps. Still, it is uncertain how the incorporation of the AI capabilities of Pluto into Robinhood is going to function and boost the user experience and efficiency of the platform.

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