UPDATE: According to Bloomberg, Kalshi retracted statements regarding a partnership with Elon Musk’s xAI shortly after a senior executive at the prediction market company promoted the agreement.
Kalshi will leverage artificial intelligence from Elon Musk’s xAI to broadcast real-time updates and news about the contracts in the online prediction market.
Kalshi enables users to bet money using derivative financial tools on the results of various events, including weather, sports, and elections. Under the regulation of the Commodity Futures Trading Commission (CFTC), Donald Trump’s return to the White House was viewed as a win for online prediction market companies like Kalshi, as his administration largely preferred reduced — rather than increased — federal control over various sectors.
Donald Trump Jr. serves as a strategic consultant for Kalshi. The top prediction market platform is now engaging another important Trump administration figure in Musk.
Kalshi is integrating xAI, which runs the well-known Grok and Grok 3 API tools, into its platform. Kalshi will soon offer AI-generated insights, enabling users to better grasp the contracts and potentially help them assess whether the current odds or market prices are appealing.
“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 achieved a significant legal win when the CFTC opted to withdraw its appeal concerning the platform providing contracts related to elections. Nonetheless, Kalshi still encounters legal and regulatory examination in state legislatures, gaming regulatory bodies, and courts nationwide.
Musk Acclaim
Mansour, who co-established Kalshi in 2018 alongside Chief Operating Officer Luana Lopes Lara while they were at the Massachusetts Institute of Technology, was candid in his admiration for 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 the announcement regarding the partnership, xAI representatives stated that the company would allocate "substantial engineering resources" to the Kalshi platform.
The Kalshi news updates follow last year's announcement regarding a sponsorship agreement with the made-up social media figure Club Pro Guy.
UNLV Artificial Intelligence Research
In other AI news, the International Gaming Institute at UNLV unveiled its AI Research Hub (AiR Hub) on Tuesday. The Las Vegas school states that the AiR Hub, a partnership between the university and the gaming sector, will promote research to enhance understanding of the effects, risks, and opportunities linked to AI in 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 release a yearly report covering the present and upcoming applications of AI in the gaming sector. Additional initiatives involve providing thought leadership and practical resources for operators and regulators to foster responsible AI oversight and governance, as well as developing solutions for essential AI systems in the industry.