Elon Musk’s AI company, xAI, is teaming up with prediction market platform Kalshi to help people make smarter bets on real-world events.
As reported by Bloomberg, xAI will use its AI technology to analyze articles and historical info, and then give Kalashi users personalized insights to help them to understand the bigger picture before placing their bets on events like central bank moves, political races, and global affairs.
The AI models from xAI are partly trained on content from Musk’s social media platform, X, so they can offer up-to-date info that captures both current moods and long-term trends. Both companies are putting a lot of effort and engineers into making this partnership work.
This comes right after some big moves for both. Musk recently announced that Microsoft’s cloud platform, Azure, will host xAI’s main AI models, called Grok 3 and Grok 3 Mini. Last year, Elon Musk’s platform X announced a new partnership with BetMGM to enter the sports gambling space.
Kalshi is also growing fast, especially after the 2024 US election, and it recently partnered with Robinhood to bring prediction markets directly into the Robinhood app. This will make it simple for regular investors to wager on sports, politics, and the economy.
By the end of 2024, xAI had raised a massive $6 billion in funding, which gave it a significant advantage over competitors like OpenAI. Major investors like BlackRock, Fidelity, and Sequoia Capital joined the round, along with support from chipmakers NVIDIA and AMD, and investment funds from Saudi Arabia and Qatar.
Interestingly, both xAI and Kalshi have connections to people close to Donald Trump. Kalshi’s board includes Trump’s son, Donald Trump Jr., as an adviser, and former Trump-nominated CFTC commissioner Brian Quintenz is also on their board. Plus, Kalshi’s former top lawyer, Eliezer Mishory, recently joined Musk’s government-related team.
Also Read: Elon Musk’s X to Launch Smart Cashtags for Stocks and Crypto Tracking
