Kalshi Instituting Elon Musk’s xAI Into Online Prediction Market Platform
Posted on: May 20, 2025, 11:02h.
Last updated on: May 20, 2025, 07:36h.
- Kalshi is incorporating AI into its online prediction market platform
- Kalshi’s AI will be powered by Elon Musk’s xAI
- Kalshi allows users to bet on an array of events
UPDATE: Per Bloomberg, Kalshi withdrew announcements about a collaboration with Elon Musk’s xAI just hours after a top executive at the prediction markets firm touted the deal.
Kalshi will utilize artificial intelligence provided by Elon Musk’s xAI to disseminate live information and news regarding the online prediction market’s contracts.
Kalshi allows users to stake money through derivative financial instruments on the outcome of everything from the weather to sports to elections. Regulated by the Commodity Futures Trading Commission (CFTC), Donald Trump’s White House return was seen as a victory for online prediction market businesses such as Kalshi, as the billionaire’s administration has predominantly favored less — not more — federal oversight of certain industries.
Donald Trump Jr. is a strategic advisor to Kalshi. The leading prediction market exchange is now tapping another key Trump administration member in Musk.
Kalshi is bringing xAI, which operates the popular Grok and Grok 3 API tools, to its platform. Kalshi will soon include AI-generated insights, which will allow users to better understand the contracts and possibly assist them in determining if the current odds, or market prices, are attractive.
“There’s deep alignment between prediction markets, social media, and AI. Prediction markets capture what people know — AI scales what people can know,” said Kalshi Chief Executive Officer Tarek Mansour. “This is just the beginning of a long collaboration to unlock the full potential of prediction markets.”
Earlier this month, Kalshi secured a major legal victory when the CFTC decided to drop its appeal regarding the platform offering contracts involving elections. However, Kalshi continues to face legal and regulatory scrutiny in state legislatures, gaming regulatory agencies, and courthouses across the nation.
Musk Praise
Mansour, who cofounded Kalshi in 2018 with Chief Operating Officer Luana Lopes Lara while they attended the Massachusetts Institute of Technology, didn’t hold back in praising Musk.
No one has fought for truth harder than Elon Musk. He has inspired me at every step,” Mansour said in on post on Musk’s X.
“I could not be more excited to announce Kalshi’s upcoming partnership with xAI to further take prediction markets mainstream. Together, we’ll shape the future of news and information,” Mansour declared.
In its release on the partnership, xAI officials said the firm would dedicate “significant engineering resources” to the Kalshi platform.
The Kalshi news follows last year’s update that involved a sponsorship deal with the fictional social media personality Club Pro Guy.
UNLV AI Study
In related AI news, the International Gaming Institute at UNLV announced its AI Research Hub (AiR Hub) on Tuesday. The Las Vegas school says the AiR Hub, a collaboration between the university and the gaming industry, will advance research to better understand the impacts, risks, and opportunities associated with AI within the gambling industry.
Our vision is to create tangible progress through collaborative, actionable research with engagement across a range of stakeholders, including regulators, academics, non-profit organizations, and industry,” said Kasra Ghaharian, the IGI’s research director.
The AiR Hub will issue an annual report discussing the current and future use of AI within the gaming industry. Other initiatives are to include thought leadership and practical tools for operators and regulators to promote responsible AI oversight and governance, and to formulate solutions for critical AI systems within the sector.
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