Elon Musk’s xAI teams up with Kalshi to power prediction market bets with AI

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Elon Musk’s artificial intelligence company xAI is partnering with prediction marketplace Kalshi to provide AI-powered information for users who make bets on multiple event outcomes, according to a new report from Bloomberg.

As part of the strategic collaboration, xAI will process news articles and historical data to deliver tailored insights and context for Kalshi users placing bets on real-world events, such as central bank moves, political races, and global affairs.

xAI’s models, trained in part on content from Musk’s social platform X, deliver real-time context that reflects both current sentiment and long-term trends.

Both xAI and Kalshi are dedicating “significant engineering resources” to support and build out the partnership, the report notes.

The partnership comes on the heels of major developments for both companies.

Earlier this week, Elon Musk announced during a virtual appearance at Microsoft’s annual technology showcase that Microsoft Azure will now host xAI’s flagship Grok models, including Grok 3 and Grok 3 Mini, via its Azure AI Foundry platform.

Kalshi, for its part, continues to build momentum following a surge in engagement during the 2024 US election. In March, the prediction market disclosed a partnership with Robinhood Derivatives, a subsidiary of Robinhood, to launch an in-app prediction market hub.

The offering will initially focus on contracts tied to political outcomes, economic indicators, and sporting events, aiming to bring predictive trading to Robinhood’s vast retail base.

The new alliance also reflects the companies’ proximity to key figures in Trump’s political orbit.

Kalshi lists Donald Trump Jr. as a strategic adviser, and its board includes Brian Quintenz, a former CFTC commissioner nominated by President Trump.

Eliezer Mishory, Kalshi’s former general counsel, joined Musk’s Department of Government Efficiency earlier this year.

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