Betting on AI: The Next Big Shift in the Gambling Industry
Highlights
- Betting Platforms like Kalshi and Polymarket, which promote betting on the performance of AI models, are gaining increasing popularity.
- The AI prediction market’s trading volume has risen to $20 million this month.
Over the recent decade, AI models have increasingly influenced the gambling industry. Due to its rising prominence, the platforms, namely Kalshi and Polymarket, have introduced betting on the performance of AI models.
The AI arms race drives the betting on AI trend by providing critical insights via social media, ranking sites, and other online forums, enabling the wagers to predict upcoming developments. This has led to a surge in wagers on the performance of the AI module, accounting for $20 million this month.
So, every new content around AI gains the attention of the wagers irrespective of its value proposition. In Early August, the trader Foster McCoy made $10,000 by betting against OpenAI’s GPT-5 release. The trader was quick and smart to interpret the online ranking site that appeared to hype GPT-5, and made his bet of $4,500 on Google Gemini that eventually won him this massive amount.