Elon Musk's AI Grok Joins Forces with Kalshi

Elon Musk's artificial intelligence startup, xAI, is set to integrate its Grok conversational model with Kalshi, the only CFTC-regulated exchange focused on event-based contracts. This partnership aims to provide real-time AI analysis to retail traders betting on various outcomes, from Federal Reserve decisions to Oscar winners. Effective immediately, Kalshi users can leverage Grok's large-language model to access on-chain data, historical odds, and breaking news before making trades. This collaboration allows xAI to refine Grok's reasoning and probability assessments in a live trading environment. Kalshi operates legally under federal regulations, where traders can buy shares of 'yes' or 'no' contracts on future events, with payouts of $1 per share for correct predictions and nothing for incorrect ones. Altogether, it accepts crypto deposits in Bitcoin, SOL, USDC, and WLD, settling all bets in U.S. dollars. Founded in 2018 by MIT graduates Tarek Mansour and Luana Lopes Lara, the New York-based company processed $1.4 billion in trades related to elections over just 11 days, according to a November 2024 report from the FIA. Grok competes with OpenAI’s ChatGPT and is integrated into Musk-owned platform X. This partnership follows Kalshi's $185 million Series B funding round in June 2025, led by Paradigm, which valued the platform at $2 billion. Following an all-stock acquisition of X, xAI was valued at about $80 billion. As these developments unfold, Washington continues to debate the expansion of retail access to event contracts, with the CFTC reopening public comments on political election markets in June 2025. This follows Kalshi’s legal triumph in 2024, overturning a previous CFTC prohibition. In a parallel move, prediction market competitor Polymarket has plans to return to the U.S. by acquiring derivatives exchange QCEX. This article represents the views of The Block, which operates independently as a media outlet to provide news and insights on the cryptocurrency industry. Note that this information is intended for informational purposes only and does not constitute legal, financial, or investment advice.