Elon Musk’s xAI Strikes $300M Grok Deal With Telegram

  • xAI is paying Telegram $300 million to integrate its Grok AI chatbot, with Telegram earning 50% of xAI subscription revenue sold on the platform, strengthening its finances as it plans a $1.5 billion bond issue, per a Wall Street Journal report.
  • The partnership, announced by Telegram CEO Pavel Durov, aims to bring advanced AI to Telegram’s 1 billion monthly users, despite challenges including Durov’s legal issues in France and xAI’s recent Grok reliability concerns.

xAI

Elon Musk’s xAI is investing $300 million in Telegram, a Dubai-based messaging platform with over 1 billion monthly users, to integrate its Grok AI chatbot, aiming to enhance user experience and tap into Telegram’s vast global audience, as announced by CEO Pavel Durov on Wednesday. The one-year partnership not only provides Telegram with a significant cash infusion but also entitles it to 50% of revenue from xAI subscriptions sold through the platform, strengthening its financial position amid a planned $1.5 billion bond issue reported by the Wall Street Journal. Durov emphasized that the deal will bring cutting-edge AI technology to Telegram users this summer, positioning the platform as a leader in integrating advanced AI capabilities.


Telegram’s growing influence, particularly in regions like Russia and Ukraine where it serves government and military users, underscores its strategic importance for xAI’s expansion. However, the partnership comes as Telegram navigates challenges, including an ongoing investigation in France targeting Durov, a citizen of France and the UAE, for alleged criminal activities on the platform, with restrictions preventing him from leaving France without authorization. Telegram has defended its compliance with EU laws, asserting Durov’s transparency. Meanwhile, xAI faces its own hurdles, with Grok recently criticized for erroneous responses tied to an unauthorized modification, prompting the company to enhance its AI’s reliability. This deal, following xAI’s $80 billion valuation merger with X (valued at $33 billion) in March, reflects Musk’s ambition to integrate AI across digital ecosystems despite technical and regulatory complexities.

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