CoinDesk 2025-07-24 20:32:27

Elon Musk’s xAI Partners With Kalshi to Bring Grok to Prediction Markets

Elon Musk’s artificial intelligence startup xAI is partnering with regulated prediction market Kalshi to bring its chatbot Grok into the world of real-money event forecasting, the companies said Thursday. The collaboration will allow Grok to analyze news, historical data and economic indicators in real time to support users trading on Kalshi’s federally regulated platform. Kalshi traders can place bets on specific outcomes of events like Federal Reserve interest rate decisions, Senate control, or monthly inflation figures — making Grok’s ability to summarize information quickly a potential edge. “Kalshi and xAI are partnering to bring Grok to prediction markets. Two of the fastest growing companies in America are now on the same team,” xAI said in a post on X. The deal brings together Musk’s latest AI venture, known for its irreverent chatbot Grok, and Kalshi, the only U.S.-regulated prediction market that offers tradable event contracts. While details of how Grok will be integrated weren’t disclosed, Bloomberg previously reported (and then retracted) in May that both companies are committing “significant engineering resources” to the project. The announcement also adds complexity to xAI and Musk’s broader prediction market strategy. Earlier this year, xAI and X named Polymarket — an unregulated crypto-based competitor to Kalshi — as their official prediction market partner . Now, with Kalshi and Polymarket effectively operating in parallel under Musk’s orbit, the market appears to be a testing ground for Grok’s AI capabilities across different regulatory frameworks. Grok’s most recent version, Grok 4, was unveiled earlier this month, promising major upgrades in reasoning and information retrieval.