Elon Musk’s xAI partners with Kalshi to bring Grok to regulated prediction markets

Elon Musk’s artificial intelligence startup xAI has joined forces with federally regulated prediction market Kalshi, in a move that brings its chatbot Grok into the realm of real-money event forecasting.

The partnership will see Grok provide real-time analysis of live news, historical data, and economic indicators to support users placing structured bets on Kalshi’s event-based trading platform. The CFTC-regulated exchange allows traders to speculate on a range of outcomes, including Federal Reserve decisions, inflation data, and election results.

“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.

Effective immediately, 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 🤝 @Kalshi pic.twitter.com/MCh5eQd906

— xAI (@xai) July 24, 2025

Grok, developed by xAI, will offer traders fast, digestible summaries of complex developments, potentially enhancing trading accuracy as interest in event contracts grows. Kalshi has reported a surge in user activity in recent months, positioning itself as a rising player in data-driven forecasting.

The deployment marks an expansion of xAI’s strategy across different regulatory models. Earlier this year, xAI and Musk’s social platform X partnered with Polymarket, a crypto-based competitor. Grok’s integration with both platforms suggests the AI firm is testing its model across diverse ecosystems.

Grok 4, the latest version of the chatbot, was launched earlier this month, bringing upgrades in reasoning, speed, and information retrieval.

Kalshi operates under oversight from the U.S. Commodity Futures Trading Commission (CFTC). The company recently secured $185 million in funding and counts politically connected figures on its advisory board, including Brian Quintenz, Trump's CFTC nominee, and Donald Trump Jr., listed as a strategic advisor.

Meanwhile, Polymarket is preparing to reenter the US through the acquisition of CFTC-registered exchange QCEX. The company's CEO confirmed the move in a recent interview, while expressing confidence in competing with sportsbooks and apps like Kalshi.