Elon Musk’s xAI is injecting $300 million into Telegram in a strategic partnership that could potentially unleash AI capabilities to over one billion users, challenging big tech’s dominance in the AI race.
Key Takeaways
- Telegram and Elon Musk’s xAI have formed a $300 million partnership to integrate Grok AI across all Telegram applications, reaching potentially over one billion users.
- The deal includes Telegram receiving $300 million in cash and equity, plus 50% of revenue from xAI subscriptions sold via Telegram.
- Grok 3, which will be available on Telegram this summer, directly competes with OpenAI’s ChatGPT, highlighting the ongoing rivalry between Musk and Sam Altman.
- The partnership comes as generative AI companies seek to expand their user bases to recover investments, with Grok currently ranking eighth on the HuggingFace leaderboard for model effectiveness.
- Despite the promising partnership, Telegram founder Pavel Durov faces legal challenges in France related to the platform’s handling of illegal activities.
Strategic Alliance Between Tech Innovators
In a major development for the tech industry, Telegram has announced a groundbreaking partnership with Elon Musk’s artificial intelligence company xAI. The one-year agreement will bring Grok AI technology to Telegram’s massive user base, estimated at over one billion people worldwide. This collaboration represents a significant advancement in the integration of sophisticated AI capabilities into mainstream communication platforms, providing users with direct access to one of the most advanced AI systems currently available.
The financial terms of the deal are substantial, with Telegram set to receive $300 million in cash and equity from xAI, along with 50% of the revenue generated from xAI subscriptions sold through the Telegram platform. This arrangement not only strengthens Telegram’s financial position but also provides xAI with immediate access to a massive global user base, accelerating the adoption of its Grok AI technology in a highly competitive market where user acquisition is crucial for AI companies seeking to recoup their significant investments.
🔥 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
— Pavel Durov (@durov) May 28, 2025
Grok AI: A New Competitor in the AI Landscape
The integration of Grok into Telegram’s ecosystem marks a significant expansion of xAI’s reach. Currently available on X (formerly Twitter), Grok offers limited functionality to non-paying users, while its premium service commands a substantial price tag of $40 per month or $395 annually. The Telegram partnership will introduce Grok 3, the latest version of the AI system, to a new audience this summer, potentially reshaping how millions of users interact with AI technology in their daily communications.
“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,” according to Pavel Durov
Grok 3 enters a competitive field dominated by established players like OpenAI’s ChatGPT and emerging challengers such as China’s DeepSeek. The competition is particularly noteworthy given the well-documented rivalry between Elon Musk and OpenAI CEO Sam Altman. Despite this competition, Grok has secured important technological partnerships, with Microsoft recently adding Grok 3 to its Azure cloud platform, further legitimizing xAI’s position in the AI industry despite previous controversies surrounding Grok’s tendency to occasionally spread conspiracy theories.
Privacy Concerns and Legal Challenges
As this partnership moves forward, both companies have emphasized their commitment to user privacy. Pavel Durov has specifically addressed potential concerns, stating that xAI will only access data that users explicitly share with Grok through direct interactions. This clarification comes at a crucial time for Telegram, as the platform’s privacy practices have faced scrutiny from various quarters, particularly regarding its default encryption settings and policies on sharing certain user information with authorities when legally required.
“User privacy is paramount. To be clear, xAI will only access data that Telegram users explicitly share with Grok through direct interactions. That’s expected — you can’t message anyone (including a chatbot) without sharing what you write,” according to Pavel Durov
The partnership announcement comes amid significant legal challenges for Telegram founder Pavel Durov, who was recently arrested in France over allegations related to the platform’s handling of illegal activities. Although released on bail, Durov is currently required to remain in Paris and report regularly to police. His travel restrictions have reportedly prevented him from visiting the United States for investment negotiations, adding a layer of complexity to Telegram’s business operations during this pivotal partnership with xAI.
The Future of AI-Enhanced Communication
The Telegram-xAI partnership represents a significant milestone in the democratization of advanced AI capabilities. By bringing Grok to Telegram’s diverse global user base, the collaboration could potentially accelerate the mainstream adoption of AI assistants in daily communication. The strategic importance of this deal is underscored by current trends in the AI industry, where companies are increasingly focused on expanding their user reach to justify the enormous investments made in developing these sophisticated systems.
As Grok prepares to make its debut on Telegram this summer, users can anticipate new ways to interact with AI within their existing messaging workflows. The integration may offer enhanced productivity tools, creative assistance, information retrieval, and other AI-powered features that could transform how people communicate on the platform. For President Trump’s supporters and conservative users who value alternatives to Big Tech platforms, this partnership between two innovative companies outside the traditional Silicon Valley establishment represents an intriguing development in the tech landscape.
