Robinhood Enhances Capabilities with AI Acquisition

Broker Robinhood Markets, Inc. announced the acquisition of the AI investment and research platform Pluto Capital Inc.

The company promises to offer clients more AI-driven features through this deal, including:

• enhanced data analysis. Pluto’s tools enable more efficient processing and interpretation of market data through the use of large language models. This will help clients identify trends and opportunities more swiftly; 
• personalized investment strategies. Pluto’s algorithms will allow Robinhood to tailor investment strategies to individual client profiles, considering risk tolerance, investment goals, and past behavior; 
• rapid information access. The broker claims that Pluto’s tools will enable investors to receive real-time updates and analytics for prompt decision-making and portfolio optimization. 

As part of the deal, Pluto’s founder and CEO, Jacob Sansbury, joined Robinhood’s team to “accelerate the product roadmap and help integrate AI capabilities into the platform.” Other details, such as the agreement’s value, remain undisclosed.

“We are excited to welcome Pluto and Jacob Sansbury to Robinhood. They have created an impressive platform highly regarded in financial services. Importantly, their expertise in AI, combined with a passion for democratizing finance, will complement our team’s efforts to provide clients with AI-based tools,” commented Mayank Agarwal, Robinhood’s Vice President of Engineering.

In June, the broker agreed to acquire the oldest European crypto exchange, Bitstamp, for $200 million.

Earlier, the company received a warning from the SEC about a potential lawsuit over securities law violations in its crypto business operations. 

Back in January, Robinhood opened up trading for all eleven SEC-approved spot Bitcoin ETFs to its U.S. clients.