Kalshi Retracts Announcement Of Partnership With Elon Musk’s xAI

Prediction market platform Kalshi announced a partnership with Elon Musk’s AI company, xAI, only to backtrack and retract the statement.

The post has since been deleted, and the story, which was originally reported by Bloomberg, has also been taken down.  Bloomberg has posted a new story confirming the retraction. It appears Mansour may have jumped the gun on announcing the deal, as it was stated that “details of the announcement had not been mutually confirmed.”

Kalshi later stated,

Kalshi building powerful connections

Kalshi expanded into election markets during the presidential campaign, and despite legal challenges, the markets appear here to stay. The Commodity Futures Trading Commission (CFTC) withdrew an appeal against the election contracts earlier this month.

Eliezer Mishory, former Kalshi general counsel, also now works at Musk’s Department of Government Efficiency.

The connections with the Trump administration are likely to gain Kalshi favor in their fight against state regulators over the legality of sports prediction markets.

If the partnership is later confirmed, it will strengthen Kalshi’s position in sports betting and election markets. The company claims to offer legal sports betting in all 50 states, much to the frustration of state regulators.

Six states issued the company with cease-and-desist letters last month following March Madness markets, but judges have sided with the company in cases in Nevada and New Jersey. This has paved the way for event contracts on NBA, NFL, MLB, and NHL single-match winners.

AI could give users better insight

In the original Bloomberg story, it was reported that the partnership between Kalshi and xAI would “provide tailored information to offer guidance for bets made by the site’s users”.

The deal would have involved xAI’s models, such as the company’s chatbot Grok, helping Kalshi users by summarizing news and historical data to inform predictions. This would have marked one of the first high-profile applications of AI in regulated prediction markets.

The error in posting the partnership without a proper agreement on both sides, however, represents a major embarrassment to Kalshi. Any future announcements will surely be checked more thoroughly.

Adam Roarty

Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.