00:00So, you know, Sam, I feel like Kalshi is the company that's made the most news of all the companies in the space this year.
00:09And now they have a new deal with X, formerly known as Twitter, for use of AI.
00:15But how would they incorporate this in terms of their prediction markets?
00:19I need a little bit more of an understanding.
00:21Yeah, Kalshi just announced this partnership with X, which centers on using Grok, the AI chatbot that is on X.
00:30You know, a lot of times people will tweet something and then ask at Grok, what's going on here?
00:35Can you clarify? And there's actually been a lot of, you know, AI isn't perfect.
00:38There's been a lot of kind of discourse about, you know, leading us the wrong way or it making mistakes, not being able to read people's humor or sarcasm or intent.
00:47But here, what Kalshi is going to try to do with this partnership is use Grok and use the AI capabilities to basically scrape the social media platform because it specializes in everything that's posted on there.
00:59All the posts that people make on there to help guide trades that people make in kind of quicker, realer time.
01:05So think of it as, you know, if you're trying to invest in something, a stock, and you want to do research, they're kind of trying to peddle it here with prediction markets.
01:13We can just see what the sentiment is online about it because a lot of the times, especially with non-sports prediction markets, you know, whether you're talking about the election or, you know, betting on the weather or Oscars, a lot of the way those markets move is really just influenced by what the public sentiment is of the market, what people are posting about, what people are talking about.
01:32We certainly see stocks rally that way.
01:34So this is a different partnership than Polymarket just announced a few weeks ago.
01:38They're also partnering with X, the social media platform formerly known as Twitter.
01:43That partnership is more about putting Polymarket's odds or market insights out there onto the social media platform to get kind of in front of eyeballs.
01:52Think of it more as a marketing partnership.
01:54And this is really more tech-based where Kalshi wants to supplement their product, which has been criticized by sportsbooks and, you know, other more legit gambling companies that have been asked, are you concerned about these sports prediction markets?
02:07They've kind of said, well, you know, their tech really isn't that great.
02:10It's kind of just, you know, you buy something, you sell something.
02:12It's not, doesn't move quick in real time.
02:14So this is just another example of, you know, Kalshi trying to expand in a very short amount of time.
02:19Remember, we've only had sports prediction markets since about like January or February, but already these companies have hit, you know, a $2 billion valuation, mostly because of these markets, which now make up, you know, 40 out of the 41 most traded of all time.
02:33So for me, this is a signal that more money is being poured into this, you know, this industry, which has gone just largely unchecked.
02:40The CFTC has not weighed in, multiple states have filed lawsuits, tribes have filed lawsuits trying to stop this.
02:46And in the meantime, I think companies are seeing it as a real opportunity to make a lot of money very quickly, especially for Kalshi and now Polymarket as well.
