Robinhood Acquires Pluto to Integrate AI Tools into Its Investing App

Investment app Robinhood is enhancing its platform with advanced AI features by acquiring the AI-driven research platform, Pluto Capital, Inc. This acquisition, announced on Monday, aims to provide Robinhood users with tools to quickly identify market trends and investment opportunities, guide their investment strategies, and enable real-time portfolio optimization.

Pluto's founder, Jacob Sansbury, will join Robinhood upon the completion of the acquisition, although specific financial details remain undisclosed.

In his new role at Robinhood, Sansbury will focus on accelerating the adoption of AI technologies within the trading app. This initiative will leverage Pluto's data analysis capabilities to process and interpret market information utilizing large language models (LLMs) with live access to global financial data and individual user data. Robinhood anticipates that these advancements will empower investors to seize new opportunities more swiftly.

Moreover, Pluto's technology will enable Robinhood to tailor investment strategies for each user by evaluating factors such as risk tolerance, investment objectives, and historical behavior, leading to more personalized recommendations.

Investors can also expect real-time updates and insights from Pluto’s integrations, which will facilitate quicker, well-informed decision-making and optimize portfolio performance, according to Robinhood.

Established in 2021, Pluto successfully raised $4 million through various seed funding rounds, achieving a valuation of $12 million (pre-money), as reported by PitchBook. The startup received backing from investors including at.inc/, Switch Ventures, Caffeinated Capital, and Maxime Seguineau.

“We are excited to welcome Pluto and Jacob Sansbury to Robinhood,” stated Mayank Agarwal, VP of Engineering at Robinhood. “They have developed an outstanding platform that is highly respected in the financial services sector. Their expertise in artificial intelligence, combined with a shared vision to democratize finance, will greatly enhance our team’s efforts to deliver AI-driven tools to our customers,” he added.

“Robinhood is the perfect environment to create products that democratize access to essential financial services like wealth management and financial planning through cutting-edge AI technology,” said Sansbury. “I am eager to innovate at a company that has inspired me and countless others,” he concluded.