SoFi buys Composer to expand AI trading platform for retail investors

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SoFi acquires Composer AI platform

Highlights

SoFi acquired AI startup Composer to enable retail investors to build, test, and automate sophisticated trading strategies without coding expertise.
Post-acquisition, SoFi users gain access to thousands of community-created strategies and automated execution on a unified platform, enhancing retail brokerage competition.
SoFi reported first-quarter members up 35% to a record 14.7 million and adjusted revenue up 41% to $1.1 billion, reflecting strong engagement amid market volatility.

AI trading expansion and deal rationale

As reported by Reuters, SoFi said on Tuesday it has bought Composer, an AI startup focused on helping retail investors build and execute sophisticated trading strategies that have traditionally been concentrated among Wall Street firms.

SoFi is betting that AI can narrow that gap by enabling individual investors to create and test complex systematic strategies with little to no coding or specialized prompting expertise. Chief Executive Officer Anthony Noto told Reuters that if an investor can explain an idea in plain English, that investor can now build, test and automate it. He added that AI is already a foundational part of investing and will transform the industry, much as mobile did for banking.

Following the acquisition, SoFi says customers will also be able to access thousands of community-created strategies and automate execution from a single platform. The company did not disclose the terms of the deal.

Competitive pressure in retail brokerage

Access to commission-free trading has made it easier for individual investors to buy and sell stocks, but more sophisticated systematic investing tools have remained largely in the hands of hedge funds and institutional firms. That gap is becoming a new battleground as brokerages look for ways to differentiate themselves in a crowded market.

Competition for retail investors has intensified since the pandemic-era trading boom brought millions of new customers into financial markets. Last month, Robinhood said it would let customers create dedicated trading accounts and deploy AI agents to trade stocks on their behalf through its platform.

SoFi enters the deal after reporting strong first-quarter growth in April, when it said members rose 35% to a record 14.7 million and adjusted revenue increased 41% to a record $1.1 billion. Noto says members are staying engaged through recent market volatility and are looking for opportunities rather than retreating from the market.

Our earlier coverage on Oracle’s 21,000 job cuts highlighted how the AI boom is reshaping big tech’s priorities by shifting spending away from labor and toward AI infrastructure. Oracle disclosed $1.84 billion in restructuring costs while ramping investment in data centers, underscoring that AI is not only a growth driver but also a catalyst for major operational realignments.

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