In AI and digital communication development, Elon Musk’s venture, xAI, has entered into a $300 million agreement with Telegram to integrate its AI chatbot, Grok, into the messaging platform. This collaboration underscores the increasing convergence of AI technologies with mainstream communication tools, aiming to enhance user experience and engagement.
Telegram CEO Pavel Durov announced a one-year partnership with xAI, in which xAI will pay the former the amount mentioned above in a combination of cash and equity. Additionally, Telegram is set to receive 50% of the revenue generated from Grok subscriptions sold directly through its app. This deal aims to bring Grok’s capabilities to Telegram’s extensive user base, which has surpassed one billion monthly active users.
🔥 This summer, Telegram users will gain access to the best AI technology on the market. @elonmusk and I have agreed to a 1-year partnership to bring xAI’s @grok to our billion+ users and integrate it across all Telegram apps 🤝
💪 This also strengthens Telegram’s financial… pic.twitter.com/ZPK550AyRV
Integration of Grok into Telegram
Grok’s integration into Telegram is designed to be seamless and user-friendly. Users will access Grok via the search bar, asking questions and receiving real-time answers without leaving the app. Beyond simple queries, it offers features such as summarising long chat conversations, links, and documents, providing AI-powered writing assistance, creating stickers, and assisting businesses with customer queries and moderation.
According to a teaser video shared by Durov, Grok AI will be pinned in chats by default for all users, allowing instant access. Features teased include smart text editing (improving, expanding, or changing tone of messages), chat and document summarisation, link insights, fact-checking in channels, instant sticker generation, and avatar creation 26.
Premium Telegram users will have priority access to Grok’s latest updates, including Grok 3, while basic users may have limited features or delayed access. The integration supports group chats, private chats, and channels, making Grok widely accessible across the platform.
Data utilisation and privacy considerations
While the integration promises enhanced user experiences, it also questions data usage. With many open-source repositories exhausted, AI companies face increasing challenges in sourcing quality data. xAI’s acquisition of X (formerly Twitter) earlier this year, valued at $33 billion, provided access to vast amounts of user data for AI model training.
However, it’s unclear whether xAI will utilise Telegram user data similarly, as neither company has commented. Telegram has stated that it handles user data and privacy independently, with Grok’s answers and interactions running through secure Telegram channels. Built-in safety filters and privacy controls are active to minimise misuse or inappropriate responses.
In tandem with the xAI partnership, Telegram reportedly plans to raise at least $1.5 billion through a bond issue, with strong support from new and existing investors, including BlackRock. This financial move aims to bolster Telegram’s infrastructure and support its growth initiatives, including integrating advanced AI features like Grok.
The announcement comes as Telegram reportedly plans to raise at least $1.5 billion through a bond issue on Wednesday, with strong support from new and existing investors, including BlackRock.The five-year bond offers a yield of 9% and includes an option to convert into equity if Telegram goes public. The funds will be used to repurchase debt from a previous bond offering maturing next March. Telegram reported a profit of $540 million on $1.4 billion in revenue in 2024, a sharp turnaround from a $173 million loss in 2023, and expects to exceed $700 million in profit for 2025.
xAI’s multi-billion-dollar funding streak
Elon Musk’s xAI, has rapidly ascended in the tech industry, securing substantial investments to bolster its position in the competitive AI landscape. In May 2024, xAI initiated its funding journey with a $6 billion Series B round, achieving a post-money valuation of $24 billion. Building on this momentum, xAI closed another $6 billion in a Series C funding round, elevating its valuation to over $40 billion. By November 2024, xAI reportedly raised an additional $5 billion, doubling its valuation to $50 billion. The funds were earmarked for expanding its AI infrastructure, including acquiring 100,000 Nvidia chips to enhance its training capabilities.
In early 2025, xAI entered discussions to raise $10 billion, potentially valuing the company at approximately $75 billion. By April 2025, reports indicated that xAI was aiming for a $20 billion funding round, which could value the company at over $120 billion. If successful, this would mark one of history’s largest private funding rounds, underscoring the investor confidence in xAI’s vision and capabilities.
These funding rounds have provided xAI with the capital to develop advanced AI models like Grok and positioned the company as a stiff competitor in the AI sector, challenging established players and driving innovation across various applications.
In March 2025, Musk revealed that xAI had merged with X (formerly Twitter) in a transaction valuing xAI at $80 billion, while X was valued at $33 billion.
Industry implications and future outlook
The Telegram-xAI partnership signifies a broader trend of integrating AI into mainstream communication platforms. Companies like Meta have already incorporated AI features into platforms like WhatsApp and Instagram. Telegram’s move to integrate Grok reflects the growing importance of AI in enhancing user engagement and streamlining digital interactions.
As Grok becomes accessible to over a billion users, it has the potential to redefine user interactions and set new standards for AI integration in messaging platforms. However, as with any technological advancement, it brings forth considerations around data privacy and ethical AI usage. As the AI landscape continues to evolve, partnerships like this will play a pivotal role in shaping the future of digital communication.
This partnership also brings together two high-profile and sometimes controversial tech leaders. Pavel Durov is currently under investigation in France for allegedly permitting illegal activities on Telegram and has been prohibited from leaving France without permission. Musk, meanwhile, is known for his multiple ventures, including Neuralink and SpaceX, and a high-profile dispute with OpenAI’s Sam Altman. He is also involved in political campaigns and the recent acquisition of X.
Durov expressed enthusiasm for the alliance, stating, “Together, we win!” on social media. Some industry observers speculate that Musk may soon create his Telegram channel following the partnership.
