Investment app Robinhood with its acquisition of Pluto Capital, Inc., an AI-powered research platform will bring more AI features for investors. The company announced Monday that Pluto would enable Robinhood to add tools for more quickly identifying trends and investment opportunities, help in guiding the user concerning their investment strategy, and real-time portfolio optimization.

The terms were not disclosed in the deal, though Pluto founder Jacob Sansbury is to join Robinhood upon closing of the deal.

On the task list is to further enhance AI uptake at Robinhood's trading app. It would include using Pluto's data analytics capability to process and interpret market data by processing LLMs with real-time access to global financial data and personal user data that will enable its investors to jump on new opportunities sooner.

In addition, Pluto will help Robinhood personalize the investment strategy for the individual user by analyzing risk tolerance, investment objectives, and historical behavior for more personalized recommendations.

Due to Pluto's integrations, investors will also get real-time updates and insights, says Robinhood, thus allowing them to make informed decisions faster and help optimize their portfolios for better results.

Founded in 2021, Pluto has raised multiples seed funding rounds that amount to a $4 million valuation. According to PitchBook, the pre-money valuation of the company is at $12 million. Supporting investors include at.inc, Switch Ventures, Caffeinated Capital, and Maxime Seguineau.

We're excited to have Pluto and Jacob Sansbury join Robinhood," VP of Engineering Mayank Agarwal said in a statement shared by Robinhood. "They've built an impressive platform that's widely respected in the financial services space. Importantly, their deep expertise in artificial intelligence combined with passion about our mission to democratize finance will complement our team's effort to bring AI-powered tools to our customers," he added.

"Robinhood is the perfect place to engineer products that democratise access to financial services like wealth management and financial planning through leading-edge AI, " said Sansbury. "I look forward to innovating at the company which has inspired me and so many others," he said.