Elon Musk’s xAI strikes a massive $300 million deal with Telegram to integrate Grok AI chatbot across the platform, raising serious concerns about user privacy and controversial content moderation while Telegram’s CEO remains restricted from US travel due to ongoing legal troubles.
Key Takeaways
- Elon Musk’s xAI is paying Telegram $300 million in cash and equity to integrate its Grok AI chatbot into the messaging platform
- Telegram will receive 50% of all subscription revenue from xAI services purchased through the app
- The partnership faces scrutiny over Telegram’s controversial encryption practices and CEO Pavel Durov’s ongoing legal troubles in France
- Grok has been criticized for generating controversial content while simultaneously being recognized for its advanced AI capabilities
- The deal occurs amid growing concerns about Telegram’s use by Russian authorities for influence operations
A $300 Million Deal with Revenue Sharing
In a major expansion of AI technology into mainstream communication platforms, Elon Musk’s artificial intelligence company xAI has formalized a substantial partnership with Telegram. The agreement involves xAI paying $300 million to Telegram in a combination of cash and equity for integrating the Grok AI chatbot across the messaging platform. The integration will last for one year and involve various applications available within Telegram’s ecosystem, potentially transforming how millions of users interact with AI tools on a daily basis.
“xAI will pay $300 million in cash and equity to the chat app as part of the deal, Telegram’s CEO Pavel Durov said on Tuesday,” said Pavel Durov.
The financial arrangement goes beyond the initial investment. In addition to the $300 million payment, Telegram stands to benefit significantly from ongoing revenue generation. Telegram CEO Pavel Durov confirmed that his company will earn 50% of all revenue from xAI subscriptions purchased through the app. Previously, Grok was only available to Telegram’s premium users, but this new partnership suggests the AI assistant may now become accessible to all Telegram users, creating a substantial potential market for subscription services.
Expanded AI Features Coming to Telegram
The partnership introduces an impressive range of AI functionalities to Telegram’s messaging platform. According to demonstrations shared by Durov, Grok can be pinned at the top of chats for easy access and will also be available through Telegram’s search bar. The AI assistant is designed to provide writing suggestions, summarize lengthy conversations, create custom stickers, answer business-related questions, and even assist with content moderation – a particularly notable feature given Telegram’s controversial history with content policies.
Grok represents one of the more advanced AI assistants currently available. Despite controversy surrounding some of its outputs, the latest Grok model ranks eighth on the HuggingFace leaderboard for overall AI model effectiveness. This integration gives Telegram users access to sophisticated AI capabilities without requiring them to leave the messaging platform, potentially giving both companies a competitive advantage in their respective markets against rivals like ChatGPT and other messaging services.
“Durov said Telegram will also earn 50% of the revenue from xAI subscriptions purchased through the app,” said Pavel Durov.
Controversies and Concerns Shadow the Partnership
The partnership comes at a time when both companies face significant scrutiny. Telegram has been repeatedly criticized for its encryption practices – notably, its chats are not end-to-end encrypted by default, raising concerns about privacy and security. More troubling are reports from The Atlantic Council’s DFRLab identifying Telegram as a platform utilized by Russian authorities for influence operations. These security concerns cast a shadow over the integration of an AI system that will potentially have access to user conversations and data.
Pavel Durov’s legal situation further complicates matters. The Telegram CEO was arrested in France over allegations related to the platform’s handling of illegal activities and content moderation failures. Though released on bail, Durov remains restricted to Paris, required to check in regularly with police, and has been denied travel to the United States for business meetings, including investment talks. This restricted mobility could impact the partnership’s implementation and ongoing development at a critical time.
Meanwhile, xAI’s Grok has faced its own controversies, including criticism for generating and spreading conspiracy theories and problematic content. Despite these issues, Microsoft recently added Grok 3 to its Azure platform, indicating major tech companies are willing to overlook these concerns. As Grok becomes more deeply integrated into Telegram’s ecosystem, questions about content moderation, user safety, and the responsible deployment of AI technology will likely intensify.
