Kalshi, a regulated prediction market platform, has partnered with Elon Musk’s artificial intelligence startup xAI to improve how users place bets using real-time, AI-generated data.
Kalshi plans to use xAI’s technology, trained on data from Musk’s social media platform X, to deliver synthesized news content and trend analysis to help users make informed predictions on major events like interest rate hikes and political elections.
Kalshi uses xAI to help users predict events with real-time context
Users on Kalshi buy and sell contracts that reflect the outcome of a wide range of events like the Federal Reserve’s decision on interest rates, the winner of an upcoming election, or the weather conditions in a specific region on a certain day.
Users profit from these contracts, which are derivatives if they correctly predict the outcome. Since the U.S. Commodity Futures Trading Commission (CFTC) regulates Kalshi, the platform must follow government regulations that protect users and ensure the market stays fair and transparent.
Kalshi has even received attention and support from influential investors and public figures like Donald Trump Jr., who serves as a strategic adviser.
Kalshi plans to use artificial intelligence tools from Elon Musk’s AI startup, xAI, to provide smart, real-time summaries and market insights that help users understand the events they’re betting on.
xAI uses data from X to train its algorithms to follow breaking news and trending conversations about politics, finance, and global events because the platform has a rich and constantly updating stream of information, which helps Kalshi keep up with stories that could influence the outcome of their contracts.
Similarly, X partnered with a well-known sports betting company, BetMGM, which shows how invested Elon Musk’s companies are in the prediction and gambling industries.
Kalshi CEO Tarek Mansur mentioned that a natural connection exists between prediction markets, social media, and AI because “prediction markets capture what people know — AI scales what people can know,’ He explained that his partnership with xAI is just the beginning and that both companies will keep building tools to create more value for users and improve how people interact with complex global events.
Kalshi and xAI deepen ties to U.S. politics and regulators amid rising scrutiny
Kalshi has strong political ties with Donal Trump Jr., the company’s strategic adviser, and board member Brian Quintez, who President Donald Trump nominated to lead the CFTC.
The fact that the CFTC oversees Kalshi and is responsible for approving and rejecting markets on elections, inflation, and interest rate decisions means that the company has a lot of influence at the highest levels.
xAI is also getting more involved in regulation and policy through Elon Musk’s “Department of Government Efficiency” initiative, which plans to influence how the federal government uses technology and applies finance, artificial intelligence, and transparency regulations.
Kalshi’s general counsel, Eliezer Mishory, left the firm to lead regulatory outreach at Musk’s Department of Government Efficiency and focus on making processes at agencies like the Securities and Exchange Commission (SEC) more efficient and accommodating to AI and blockchain systems.
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