A16z just chose sides in the prediction market war- and AI builders should pay attention. Andreessen Horowitz backed the CFTC against states trying to ban prediction markets like Polymarket and Kalshi. This isn't about gambling- it's about data infrastructure. Prediction markets are becoming the primary source of real-time sentiment data for AI systems. When you train an AI agent to make investment decisions, where does it get market sentiment? Not from surveys or social media noise. From prediction market odds. States banning prediction markets would kill the data pipeline that powers the next generation of AI trading bots and decision-making systems. A16z gets this. They're not just protecting their Polymarket investment — they're protecting the entire AI x prediction market stack. The real winner here? Whoever builds the best API layer between prediction markets and AI agents.

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