AI + Prediction Markets: Grok Taps into Kalshi to Power Real-Time Event Trading

Elon Musk’s AI brainchild, Grok, is officially stepping into the world of prediction markets.

In a move announced on X, Grok will now power real-time AI analysis for Kalshi users, the only CFTC-regulated platform where traders can bet on events like interest rate decisions, movie awards, and even the weather.

Think of it as ChatGPT with skin in the game.

Kalshi taps Grok for AI-powered market insight

The integration gives Kalshi users direct access to Grok’s large language model (LLM), letting them query on-chain data, historical market odds, and breaking headlines, all before placing a trade.

Meanwhile, for xAI (the company behind Grok), this real-time environment provides a practical sandbox to stress-test Grok’s ability to interpret probabilities and deliver timely insight.

It’s a two-way street: traders get AI-powered analysis, and Grok gets live feedback.

Kalshi, founded in 2018 by MIT grads Tarek Mansour and Luana Lopes Lara, runs a federally regulated event contract exchange. Traders buy “yes” or “no” shares that pay out $1 per share if they’re right, $0 if they’re not.

While wagers are settled in U.S. dollars, the platform accepts crypto deposits including Bitcoin, Solana, USDC, and Worldcoin (WLD).

According to a report from the FIA Expo, the exchange processed $1.4 billion worth of election-related trades in just 11 days last November.

A fresh chapter for Kalshi and Grok

Kalshi’s decision to bring in Grok follows a big Series B raise in June led by Paradigm, valuing the platform at $2 billion.

Musk’s xAI, which develops Grok and also owns the X platform, recently saw its valuation jump to $80 billion following an all-stock acquisition of X, according to Axios.

The companies seem to be leaning into the synergy. “Two of the fastest-growing companies in America are now on the same team,” xAI posted on X.

Elsewhere in the prediction market world, Polymarket—, another key player, is reportedly plotting its U.S. comeback through the acquisition of derivatives exchange QCEX.

But for now, Kalshi’s getting the AI edge thanks to Grok, and retail traders just got a new tool in their betting toolbox.

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