Robinhood aims to expands AI capabilities with acquisition of Pluto

Robinhood is significantly enhancing its AI-driven features by acquiring Pluto Capital, Inc., an AI-powered research platform.

Financial terms of the deal were not disclosed.

Announced on Monday, this strategic move is set to integrate advanced AI tools into Robinhood’s platform, enabling investors to identify trends and investment opportunities more efficiently, receive tailored investment strategies, and optimize their portfolios in real time.

Pluto Capital’s founder, Jacob Sansbury, will join Robinhood as part of the acquisition. Sansbury will lead the charge in incorporating Pluto’s AI technologies into Robinhood’s offerings, leveraging large language models (LLMs) to analyze market data and user-specific information. This integration aims to provide Robinhood’s users with swift insights into market movements and personalized investment advice based on their risk profiles, goals, and historical behavior.

Mayank Agarwal, Robinhood’s VP of Engineering, expressed enthusiasm about the acquisition. “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,” Agarwal stated.

Founded in 2021, Pluto Capital quickly gained recognition in the financial tech space, securing $4 million through multiple seed funding rounds. The startup, valued at $12 million pre-money according to Pitchbook, received backing from notable investors including at.inc/, Switch Ventures, Caffeinated Capital, and Maxime Seguineau.

With Pluto’s advanced data analysis capabilities, Robinhood users can expect a more dynamic and responsive investing experience. The AI tools will offer real-time portfolio optimization, ensuring that investors can capitalize on emerging opportunities promptly and make informed decisions supported by comprehensive data analytics.

Jacob Sansbury shared his excitement about joining Robinhood, emphasizing the alignment of their missions. “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. I look forward to innovating at the company which has inspired me and so many others,” he said.