Kalshi is reportedly back in discussions with investors, seeking a valuation of $65bn only weeks after the prediction market operator completed its $1bn fundraising round.
Bloomberg reported Nov. 12 that Kalshi is considering another private financing, despite expectations that its October round would be its last before a potential initial public offering (IPO).
The proposed valuation would represent a 62.5% increase from the $40bn valuation confirmed on Oct. 29. No funding amount has been disclosed, according to Bloomberg, and negotiations remain ongoing. Bloomberg had also reported the previous $40bn valuation in September, nearly a month before Kalshi confirmed that financing
Sequoia Capital and Wellington Management co-led October’s financing, with backing from Andreessen Horowitz, Coatue, Morgan Stanley Investment Management and other institutional investors.
That round followed another $1bn investment in May, which Coatue led, that valued Kalshi at $22bn. The company’s valuation would nearly triple in six months if the latest financing closes at $65bn.
Kalshi’s volume rises with valuations
Trading activity has grown nearly as quickly. Monthly notional volume climbed from $40bn in August to a record $98.15bn in October.
Kalshi’s annualized revenue run rate recently surpassed $5bn, according to Bloomberg. Documents reviewed by the outlet during October’s financing also indicated gross margins of around 90%.
A source familiar with the matter told Reuters that the proposed financing would help fund an AI compute futures platform, extending Kalshi’s operations into derivatives tied to computing resources.
Kalshi already offers event contracts tied to GPU rental prices and has developed compute forward curves showing market expectations for future computing costs. The company also identified compute markets as a planned area of expansion in its October funding announcement.
Such contracts could allow businesses to hedge changes in cloud computing and graphics processing unit (GPU) capacity costs. CME Group and Intercontinental Exchange (ICE) are also pursuing opportunities in that market.
However, the Commodity Futures Trading Commission (CFTC) has delayed its review of CME’s proposed GPU futures by at least 60 days amid concerns about benchmark reliability and potential price manipulation, the Financial Times reported this week.
Kalshi cuts ties with Trump Jr. amid Polymarket funding push
Kalshi isn’t alone in attracting substantial private capital. Polymarket is reportedly finalizing a $1bn financing round, first reported in August, that would value the company at $21bn.
The round is being led by 1789 Capital, where Donald Trump Jr. is a partner, a spokesperson for the firm confirmed. It plans to invest approximately $300m after previously investing around $200m.
That relationship has also affected Kalshi. The company told Reuters on Nov. 12 that it had ended its advisory agreement with Trump Jr., who had served as a paid adviser since January 2025.
Trump Jr., who also serves as an adviser to Polymarket, received a stake in Kalshi reportedly worth about $300,000 when he joined. Kalshi attributed its split with the president’s son to 1789 Capital’s growing investment in Polymarket. The company said the separation was mutual and that discussions began in August, before the midterm elections.
Polymarket has also secured substantial backing from Intercontinental Exchange (ICE), the New York Stock Exchange’s parent company. ICE initially invested $1bn in October 2025, followed by another $600m in March 2026. The companies also collaborate on distributing prediction market data.
Polymarket also confirmed staff layoffs and contractor cuts this week as it reorganizes under new senior leadership. The company has not disclosed how many positions were eliminated.
Legal challenges continue amid funding talks
Beyond their rivalry for capital, both companies face mounting legal challenges over their sports-related contracts.
Arkansas Attorney General Tim Griffin sued Kalshi Nov. 4, alleging that its operations constitute illegal gambling and violate state consumer protection law. Missouri subsequently agreed to suspend enforcement against Kalshi while federal litigation proceeds.
In Louisiana, a state judge issued a temporary restraining order on Nov. 12 barring Kalshi, Polymarket and several other operators from offering event contracts to people in the state without authorization.
The Louisiana ruling came the same day the Justice Department and Commodity Futures Trading Commission (CFTC) sued Arkansas and Attorney General Griffin, seeking to block the state’s enforcement action against Kalshi.