Robinhood has acquired AI-powered investment platform Pluto Capital to enhance its service offerings for retail investors.

The acquisition aims to provide users with enhanced data analysis, personalized investment strategies, and real-time insights.

Pluto's founder, Jacob Sansbury, will lead the integration of AI tools at Robinhood as part of the company's international expansion efforts.

Financial details of the acquisition were not disclosed, but Pluto was previously valued at $12 million pre-money.

This acquisition follows Robinhood's recent purchase of Bitstamp for $200 million in cash, accelerating its global expansion into cryptocurrency and institutional business offerings.

Robinhood also announced a $1 billion buyback program despite a slight decline in shares after the announcement.

Deloitte predicts AI tools will play a significant role in retail investment advice, with usage expected to reach 78% by 2028, but warns of potential fraud risks from hyper-realistic fake content.

The integration of Pluto's advanced AI tools is expected to deepen user engagement and loyalty through enhanced investment insights tailored to individual financial goals.