Kalshi has closed a $1 billion Series G funding round co-led by Sequoia Capital and Wellington Management, reaching a post-money valuation of $40 billion. The raise marks the prediction market platform's second multi-billion-dollar round in under six months, with its valuation surging 82% from $22 billion in May. Participating investors also included Baillie Gifford, Morgan Stanley Investment Management, Coatue Management, and a16z. Kalshi plans to allocate funds toward leveraged event contracts, single-stock perpetual futures, and computing power price markets. The company disclosed that annualized trading volume now exceeds $1 trillion across prediction markets, commodities, crypto, and perpetual futures, with over 30 million registered users accounting for more than 75% of liquidity in the U.S. prediction market sector. Annualized revenue from non-sports categories surpassed $1 billion, while the newly launched commodities vertical crossed $100 million in annualized trading fees within three months. Crypto trading hit $140 billion in annualized volume, and perpetual futures recorded $83 billion in cumulative trading volume with over 500,000 unique traders. Approximately 500 institutional entities were active on the platform as of September, representing roughly 25% of total trading volume excluding market makers. Despite rapid growth, Kalshi faces mounting regulatory headwinds. In October, Utah's Attorney General filed criminal charges against the platform and co-founders Tarek Mansour and Luana Lopes Lara, alleging illegal promotion of online gambling, alongside a civil forfeiture lawsuit seeking $30–$60 million in damages. The CFTC simultaneously sued to block state-level enforcement actions. Circuit courts have issued conflicting rulings on whether sports event contracts qualify as federally protected swaps or unlicensed sports betting subject to state law, with potential Supreme Court review looming. Additionally, competitor Polymarket is reportedly targeting a $1 billion funding round at a $21 billion valuation led by 1789 Capital.