Robinhood to Enhance Trading with AI Tools Following Acquisition of Pluto Capital
Summary:
Investment platform Robinhood acquires AI-powered investment research firm Pluto Capital, aiming to provide users with personalized strategies, data analytics, and real time market insights. The deal will see Pluto’s CEO assisting Robinhood with product planning and AI integration. The acquisition will streamline user trades by evaluating aspects like risk tolerance and investment goals. Furthermore, it enables quicker identification of financial trends, giving investors a competitive edge. Last month, Robinhood also purchased cryptocurrency exchange Bitstamp to serve its US institutional clients.
Users of Robinhood, an investment platform, will soon benefit from artificial intelligence (AI) tools to assist them in making informed trading decisions. This development is due to Robinhood's acquisition of Pluto Capital, a firm known for its AI-driven investment research. The integration of Pluto's AI capabilities will offer Robinhood traders advantageous resources such as personalized investment strategies, data analytics tools, and real-time market insights, improving their swift and decisive trading ability.
Moreover, the deal will bring onboard Pluto’s founder and CEO, Jacob Sansbury, to aid Robinhood with its product planning and handling of AI integrations. The AI tool provided by Pluto is expected to be instrumental in enhancing the performance of investor's portfolios. It does this by evaluating every Robinhood user's risk tolerance, past trading history, and investment goals.
Pluto capitalizes on large language models that process real-time information on global financial trends, including fluctuations in stock prices, company earnings, news pieces, and documents summarised or submitted to the U.S. Securities and Exchange Commission. The system's rapid identification and analysis of various financial trends and investment prospects gives investors the upper hand in the competition.
Founded by Sansbury in August 2021 in the San Francisco Bay area, Pluto has come a long way. Prior to starting Pluto, Sansbury was associated with NVIDIA, an AI chip and graphics processing juggernaut, in a senior technical role.
In other news, Robinhood acquired Bitstamp, a cryptocurrency exchange, last month, for $200 million. This acquisition will be utilized to cater to its institutional clients within the U.S. The deal is presently awaiting regulatory authorization, though it's projected to be concluded in the first half of 2025.
The cryptocurrency industry's potential to "revolutionize the financial system fundamentally" was emphasized by Vlad Tenev, Robinhood’s CEO, while discussing his company’s acquisition. Presently, Robinhood commands a strong user base with nearly 24 million funded clients, around 14 million monthly active members, and an impressive $130 billion in assets under its management.
As of June 1st, Robinhood shares (HOOD) were trading at $22.97, marking a slight increase of 0.35% for the day based on data from Google Finance.
Published At
7/2/2024 4:19:52 AM
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