xAI announced on Thursday that it has partnered with finance exchange Kalshi Inc. to bring its artificial intelligence (AI)-based chatbot Grok to prediction markets.

The partnership follows a $185 million Series B funding round for Kalshi in June 2025, led by crypto venture capital firm Paradigm, which valued the platform at $2 billion. This comes as xAI’s valuation reached $80 billion after its all-stock acquisition of X, as reported by Axios.

The collaboration underscores a growing trend of merging AI with decentralized finance (DeFi) tools, with both parties highlighting their roles in shaping next-generation financial infrastructure.

Grok, developed by xAI, is positioned as a direct competitor to OpenAI’s ChatGPT and is embedded within Musk’s social media platform, X.

By integrating with Kalshi, xAI expands Grok’s applications beyond consumer interaction into financial decision-making. The platform’s ability to process unstructured data—such as social media trends and news—could provide traders with a competitive edge in a market where timing and accuracy are critical.

The collaboration occurs amid ongoing regulatory scrutiny of prediction markets in the U.S. In June 2025, the CFTC reopened public comments on political election markets following a contentious debate sparked by Kalshi’s legal victory in 2024.

That ruling allowed the platform to offer election-related contracts after a federal appeals court overturned a CFTC ban. The regulatory alignment with CFTC standards may mitigate some uncertainties for users, though questions remain about the broader implications of AI-driven prediction markets