Kalshi Instituting Elon Musk’s xAI Into Online Prediction Market Platform

UPDATE: According to Bloomberg, Kalshi retracted statements regarding a partnership with Elon Musk’s xAI shortly after a senior official at the prediction markets company promoted the agreement. 

Kalshi will leverage the AI technology from Elon Musk’s xAI to share real-time updates and news about the contracts in the online prediction market. 

Kalshi enables users to place bets using derivative financial instruments on various events, ranging from weather conditions to sporting events to elections. Under the supervision of the Commodity Futures Trading Commission (CFTC), Donald Trump’s return to the White House was viewed as a win for online prediction market firms like Kalshi, since the billionaire’s administration has mainly supported reduced — not increased — federal regulation of specific sectors. 

Donald Trump Jr. serves as a strategic advisor for Kalshi. The top prediction market exchange is now engaging another important member of the Trump administration, Musk. 

Kalshi is incorporating xAI, which runs the well-known Grok and Grok 3 API tools, into its platform. Kalshi will soon implement AI-generated insights, enabling users to gain a clearer understanding of the contracts and potentially helping 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 as the CFTC chose 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 courtrooms nationwide. 

Musk Commendation 

Mansour, who started Kalshi in 2018 alongside Chief Operating Officer Luana Lopes Lara while studying at the Massachusetts Institute of Technology, openly commended 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 announcement regarding the partnership, xAI representatives stated that the company would allocate “substantial engineering resources” to the Kalshi platform. 

The Kalshi announcement comes after last year's news regarding a sponsorship agreement with the made-up online figure Club Pro Guy. 

UNLV Artificial Intelligence Research 

In other AI news, the International Gaming Institute at UNLV revealed 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 enhance research to better comprehend the effects, dangers, and prospects related to AI in the gambling realm.

"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 addressing the present and upcoming applications of AI in the gaming sector. Additional efforts aim to incorporate thought leadership and practical resources for operators and regulators to encourage responsible AI oversight and governance, as well as to develop solutions for essential AI systems in the industry.