Kalshi Clarifies No Official Agreement With Elon Musk’s xAI After X Post Disappears

Kalshi CEO Tarek Mansour made waves on Tuesday with a now-deleted post suggesting a partnership between the prediction market platform and Elon Musk’s artificial intelligence venture, xAI. But hours after the announcement, both the social media post and initial media coverage disappeared, replaced with confusion and clarification.

Good to know

• Kalshi says no formal partnership with xAI currently exists.
• Bloomberg retracted its report after the post was removed.
• Kalshi is currently involved in legal disputes with multiple states.

In his original post, Mansour praised Musk’s vision, writing, “He has inspired me at every step. I could not be more excited to announce Kalshi’s upcoming partnership with xAI to further take prediction markets mainstream. Together, we’ll shape the future of news and information.”

By the end of the day, the post had been taken down, and Bloomberg updated its coverage to reflect that the partnership announcement was premature. Kalshi later issued a statement clarifying the situation: “The statement was posted in error, and while Kalshi has had discussions with xAI, there is no formal partnership at this time.”

The deleted post sparked speculation not only because of the Musk connection, but also because both companies maintain ties with figures in former President Donald Trump’s circle. Kalshi recently appointed Donald Trump Jr. as a strategic advisor, while xAI is owned by Musk, a known Trump ally. Former CFTC commissioner Brian Quintenz, nominated by Trump and once on Kalshi’s board, also adds to the web of connections.

Trump’s administration had previously tasked Musk with spearheading cost-cutting efforts under the now-defunct Department of Government Efficiency (DOGE), and earlier this year, Trump praised Tesla during a White House livestream.

Beyond political links, Kalshi continues to face legal pressure from U.S. states over its sports-related prediction contracts. The company launched new contracts this year that mirror traditional sports betting markets but are regulated federally through the Commodity Futures Trading Commission (CFTC) instead of state gaming boards.

Since these prediction markets do not pay state taxes and operate outside local gaming laws, several states have filed lawsuits or issued cease-and-desist orders to try and halt Kalshi’s offerings. Courts so far appear to support Kalshi’s claim that CFTC oversight makes state-level regulation irrelevant.