Key Points:
- Telegram founder Pavel Durov announced a $300 million partnership with Elon Musk’s xAI
- Musk later revealed no paperwork had been signed, with Durov confirming formalities still pending
- Deal would integrate xAI’s Grox chatbot into Telegram by summer 2025
- Agreement includes $300 million payment to Telegram in cash and equity plus 50% revenue share
- Announcement comes amid Telegram’s efforts to raise $1.5 billion through bond offering
- Toncoin (TON) price volatility followed the conflicting announcements
Announced Deal Faces Uncertainty After Contradictory Statements
A high-profile partnership between Telegram and Elon Musk’s artificial intelligence company xAI has been thrown into question following conflicting public statements from the leaders of both organizations. On May 28, 2025, Telegram founder Pavel Durov announced via social platform X that his messaging app had secured a partnership with xAI worth $300 million in cash and equity.
The announcement detailed plans to integrate xAI’s generative AI chatbot, Grox, across all Telegram applications by summer 2025. Durov described the AI technology as “the best on the market” and highlighted a revenue-sharing arrangement that would grant Telegram 50% of subscription revenues generated through the platform.
Hours after Durov’s announcement, however, Elon Musk responded with a clarification that no formal paperwork had been signed regarding the deal. Durov subsequently acknowledged Musk’s statement, confirming that while the partnership had been “agreed in principle,” formalities remained pending.
This public miscommunication has raised questions about the status of the partnership and created uncertainty for investors and users alike.
Financial Context: Telegram’s Broader Fundraising Efforts
The timing of the xAI partnership announcement coincides with Telegram’s efforts to secure $1.5 billion through a five-year bond offering. According to reporting from The Wall Street Journal, the debt issuance is backed by major financial institutions including:
- BlackRock (asset management firm and existing bondholder)
- Mubadala (Abu Dhabi’s sovereign wealth fund and existing bondholder)
- Citadel (hedge fund and new investor)
The bond is reportedly being priced with a 9% yield, with investors having the option to convert their debt into shares at a discount should Telegram pursue a public offering in the future.
Telegram plans to use the proceeds primarily to repurchase remaining debt from bonds issued in 2021, which are set to mature in March 2026. The company has already repurchased some of this debt using $400 million in cash reserves.
Market Impact on Toncoin (TON)
The conflicting announcements had immediate effects on Toncoin (TON), a cryptocurrency associated with The Open Network, which was originally developed by the Telegram team before becoming independent.
TON experienced significant price volatility:
- 23% increase (from $2.98 to $3.69) following Durov’s initial announcement
- 11% decrease (to $3.27) after Musk’s clarification
This price action demonstrates the market’s sensitivity to developments associated with Telegram and potential partnerships that could affect its ecosystem.
Implications and Outstanding Questions
The confusion surrounding this potential partnership raises several important considerations:
- Corporate governance questions: The premature announcement of an unsigned deal by Durov could raise concerns about Telegram’s corporate communication practices
- Funding strategy: The pursuit of both equity partnerships and debt financing suggests Telegram is actively exploring multiple avenues to strengthen its financial position
- AI integration strategy: Despite the uncertainty, Telegram’s interest in integrating advanced AI capabilities indicates a strategic direction for the platform’s future development
As both companies continue negotiations, users and investors will be watching closely to see whether the partnership materializes as initially described or takes a different form entirely.