Can Telegram and xAI’s $300M Deal Redefine AI-Powered Messaging?
On May 28, 2025, Telegram, a leading messaging platform with over 1 billion monthly active users, announced a partnership with xAI, Elon Musk’s artificial intelligence venture, to integrate xAI’s Grok chatbot into its ecosystem. This collaboration, valued at $300 million, aims to enhance Telegram’s AI capabilities and provide xAI with access to a vast user base for its AI technology. However, conflicting statements from the involved parties have introduced uncertainty, with the deal reportedly agreed in principle but not yet officially signed as of May 31, 2025.
Partnership Details
The financial structure of the partnership includes xAI paying Telegram $300 million, comprising both cash and equity, as reported by Reuters. Additionally, Telegram will receive 50% of the revenue from xAI subscriptions, such as Grok Premium and Premium+, sold through the Telegram app, according to Engadget. The partnership is set for a one-year duration, during which Grok will be deeply integrated into Telegram’s features.
| Aspect | Details |
|---|---|
| Financial Terms | $300 million in cash and equity from xAI |
| Revenue Sharing | Telegram gets 50% of xAI subscription sales via the app |
| Duration | One year |
| Integration Features | Pinning Grok to chats, search bar access, text composition, chat summarization, sticker creation, content moderation |
| User Base | Telegram: over 1 billion monthly users; xAI’s X platform: ~500 million users |
Grok’s integration will allow users to pin it to the top of their chats, use it via the search bar, and leverage it for tasks like text composition, summarizing chats, links, and documents, creating stickers, answering business-related questions, and assisting in content moderation. Previously, Grok was available only to premium subscribers, but this partnership aims to make it accessible to all Telegram users.
Market Reaction and Financial Context
The announcement initially caused a surge in Toncoin (TON), Telegram’s associated cryptocurrency, which rose by 18.7% to $3.55 before pulling back to $3.35 following Musk’s clarification, as noted by The Block. This volatility reflects market sensitivity to the partnership’s status. Additionally, Telegram plans to raise $1.5 billion through a new bond issuance, potentially linked to the financial inflow from xAI, according to The Block.
Controversy and Deal Status
The partnership has faced controversy due to conflicting statements. Pavel Durov, Telegram’s CEO, announced the deal on X , stating, “No deal has been signed.” Telegram later clarified that the agreement is in principle, with final documentation pending, as per The Block.
This discrepancy has led to uncertainty, with some X posts, like one from @techdevnotes
, suggest Telegram owns a minority stake in xAI, consistent with the equity component of the deal.
Data Access and Privacy Concerns
A critical aspect is data access. xAI has stated it will only access data that Telegram users explicitly share with Grok, as per Reuters. However, there is uncertainty about whether data from Telegram’s Channels feature will be used for Grok training, especially given AI companies’ data scarcity issues, as noted by Engadget and The New York Times. Engadget reached out for clarification but was awaiting a response as of the latest reports.
Broader Context and Industry Trends
This partnership aligns with industry trends of integrating AI into messaging platforms. For example, Meta’s integration of its AI assistant into WhatsApp faced user backlash, highlighting privacy and acceptance challenges, as reported by BBC. For xAI, the partnership offers a chance to expand Grok’s reach and gather data for AI model improvement, while Telegram could enhance user engagement and functionality.
Potential Impacts and Future Outlook
If finalized, the partnership could set a precedent for AI-messaging integrations, potentially transforming user experiences with advanced features. For Telegram, it could strengthen its financial position and competitive edge against platforms like WhatsApp. For xAI, access to Telegram’s user base could accelerate Grok’s development, though success depends on addressing privacy concerns and user acceptance.
The uncertainty around the deal’s signing suggests ongoing negotiations, with market reactions indicating high stakes. As of May 31, 2025, the partnership remains a promising but not yet confirmed development, with implications for both companies’ strategic goals.
