Robinhood Acquires Pluto to Add AI Features for Its Investors

If you use Robinhood as a platform for your investments, you probably now have more reasons to stay consistent with it, as Robinhood announced on Monday that it has acquired an AI-powered research platform called Pluto Capital, Inc.

Founded in 2021, Pluto raised $4 million across multiple seed funding rounds, valuing the company at $12 million (pre-money), according to data from PitchBook. The startup was also backed by investors including at.inc/, Switch Ventures, Caffeinated Capital, and Maxime Seguineau.

Through this acquisition, Pluto will allow Robinhood investors to utilize tools for faster identification of trends and investment opportunities, help them with their investment strategies, and offer real-time portfolio optimization.

To ensure the success of the acquisition, Robinhood decided to integrate Pluto's founder, Jacob Sansbury, into the company to oversee Pluto's data analysis capabilities in line with the processing and interpretation of market and financial data using large language models (LLMs).

Pluto will also help Robinhood to customize its investment strategies for the individual user by accounting for factors like risk tolerance, investment goals, and historical behavior for more personalized recommendations.

This means that as a Robinhood investor, you will most likely have an AI tool or feature that will recommend the best investment strategy for you based on your risk tolerance, investment goal, and other unique factors.

Robinhood has confirmed that it is proud to work with Pluto and believes that together they can work to democratize finance and bring AI-powered tools closer to customers.