Robinhood users are getting AI tools to help them trade.
Robinhood users will soon have access to AI tools for more informed trading, following the firm's acquisition of AI-powered investment research firm Pluto Capital.
Pluto AI will provide Robinhood traders with personalized investment strategies, data analysis tools and real-time insights to “make data-driven decisions with speed and confidence,” Robinhood said in a July 1 statement.
The acquisition will bring Pluto co-founder and CEO Jacob Sainsbury Robinhood to help with its product roadmap and AI integrations.
The AI tool helps optimize investors' portfolios by evaluating the risk tolerance, investment objectives and past trades generated by each Robinhood user.
Pluto's big language models have instant insights into things like stock prices, news articles, company financials and report cards, and filings with the U.S. Securities and Exchange Commission.
“This means identifying trends and opportunities quickly, giving investors a competitive edge.”
Cointelegraph reached out to Robinhood for more information, but did not receive an immediate response.
Pluto was founded by Sansbury in August 2021 in the San Francisco Bay Area.
Before that, Sansbury worked as a technical lead and senior software engineer at NVadi, the graphics processing and AI chip giant, which last month became the world's most valuable company.
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Meanwhile, Robinhood bought cryptocurrency exchange Bitstamp last month for $200 million, which it uses to serve institutional clients in the United States.
The Robinhood acquisition is still subject to regulatory approval, but is expected to close in the first half of 2025.
Explaining the company's acquisition, Robinhood CEO Vlad Tenev said the cryptocurrency industry would “fundamentally reorganize the financial system.”
Robinhood currently has 23.9 million funded customers, 13.7 million monthly active users and $130 billion in assets under custody.
Shares of Robinhood (HOOD) are trading at $22.97 on June 1, up 0.35% on the day, according to Google Finance data.
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