Robinhood expands offerings with acquisition of AI investing copilot Pluto

In a strategic move to enhance its investment offerings, Robinhood Markets Inc. has announced that it has acquired Pluto Capital Inc., a Los Angeles-based provider of an AI-powered investment research platform, but both companies have chosen not to disclose the financial terms of the deal.

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Pluto is known for its innovative approach to empowering retail investors through artificial intelligence technology. By offering real-time data on news articles, stock prices, company report cards, financials, and SEC filings, Pluto serves as an invaluable investing copilot for individuals looking to make informed decisions in the market.

Through this partnership with Pluto, Robinhood aims to further equip investors with the tools they need to navigate today's complex financial landscape. By leveraging Pluto's technologies for efficient processing and interpretation of market data, users will gain a competitive edge in identifying trends and opportunities within the markets.

As Robinhood continues its expansion efforts within the fintech industry, the acquisition of Pluto marks a pivotal moment in the company's growth trajectory. By combining forces with one of the leading providers of AI-driven investment research platforms on the market today, Robinhood sets itself apart as a trailblazer in revolutionizing how individuals approach investing. With a focus on democratizing finance for all users, the deal is expected to provide personalized insights and real-time information essential for making informed investment decisions in today's dynamic markets.

Founded in 2013 by  Vladimir Tenev and Baiju Bhatt,  Robinhood is a financial technology startup focusing on stock trading and investment. The Menlo Park, CA-based company is known for pioneering commission-free trading of stocks, ETFs, options, and cryptocurrencies, making investing more accessible to the general public.

 

The company generates revenues through Payment for Order Flow (PFOF), in which market traders pay Robinhood for the right to execute customer trades. The company's other cash cow is Robinhood Gold, a subscription service that offers premium features like margin trading, larger instant deposits, and access to professional research. The company also earns interest on uninvested cash in customer accounts and the Robinhood debit card transactions. The company plans to expand its financial technology platform, introduce new financial products, and improve its services. 

The company has experienced several high-profile outages and compliance issues, which have prevented users from trading during critical market moments. Despite facing multiple challenges, Robinhood remains a major player in the financial technology sector with a strong focus on innovation and user experience.