The Good Tech Companies - How Kalshi Fabricated an xAI Partnership That Never Existed

Episode Date: June 9, 2025

This story was originally published on HackerNoon at: https://hackernoon.com/how-kalshi-fabricated-an-xai-partnership-that-never-existed. Kalshi falsely claimed a partnership with Elon Musk’s xAI, prompting denials, a Bloomberg retraction, & major trust concerns for the prediction market platform. Check more stories related to tech-companies at: https://hackernoon.com/c/tech-companies. You can also check exclusive content about #xai-partnership, #kalshi, #xai, #elon-musk, #prediction-markets, #corporate-communications, #cftc, #good-company, and more. This story was written by: @jonstojanjournalist. Learn more about this writer by checking @jonstojanjournalist's about page, and for more stories, please visit hackernoon.com. Kalshi falsely announced a partnership with Elon Musk’s xAI, leading to public denials by X and xAI, a Bloomberg retraction, and major credibility fallout. The incident raises concerns over Kalshi’s corporate practices amid heightened regulatory scrutiny and damages trust in its prediction market operations.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. How Kaoshi Fabricated an X.A.I Partnership That Never Existed by John Stoyan Journalist The prediction market industry was affected yesterday by what appears to be a serious case of misleading corporate communications. Kaoshi's fabricated partnership announcement with Elon Musk's X.A.I has drawn attention from industry observers and raised questions about the company's practices. The timing of this incident is particularly notable given the regulatory context surrounding Caoshi. Former Caoshi board member Brian Quintenz awaits

Senate Deconformation to lead the Commodity Futures Trading Commission, CFTC, which oversees prediction markets and other derivatives exchanges. The facts surrounding Tuesday's events are remarkable in their sequence. Cauchi CEO Tarek Mansur announced the purported partnership on social media, claiming the collaboration would, shape the future of news and information, before deleting all posts within hours. colon slash slash x dot com slash marionne off l slash status slash one nine two five two eight zero four three four nine eight six zero eight six seven five eight bloomberg which initially reported the partnership took the extraordinary step of issuing a complete retraction a move financial journalists note is exceedingly rare and reserved for the most

serious reporting errors kaoshi's subsequent explanation that details of the announcement had not been mutually confirmed has raised eyebrows among those familiar with standard corporate communications protocols. Major companies typically have extensive legal and communications procedures to prevent unauthorized or premature partnership announcements. Industry observers point to Kaoshi's need for technological credibility as a likely motive for the premature, or possibly fabricated, announcement. An association with Musk's AI venture would have immediately boosted its market positioning. Rather than remaining silent, X and XAI took the unusual step of explicitly denying that any such partnership ever existed. X posted a statement

that XAI subsequently reposted, making clear no substantive partnership discussions had occurred. https://x.com//x//status//1925250564599709732 The damage to Cauchy's reputation could be significant in an industry where trust is the foundation of the business model. Prediction markets function effectively only when participants have confidence in the platform's integrity. When a platform is willing to misrepresent fundamental facts about its business relationships, users may reasonably question other aspects of that platform's operations.

As the industry digests this extraordinary episode and competitors potentially capitalize on the misstep, Caoshi faces an uncertain future. For a company that built its brand on predicting outcomes, it has failed to anticipate the obvious consequences of making claims about a partnership that was never confirmed and, according to X and XAI, never existed at all. Thank you for listening to this Hacker Noon story, read by Artificial Intelligence. Visit HackerNoon.com to read,