tl;dr
Telegram has secured a $300 million deal plus equity with Elon Musk’s xAI to exclusively integrate Musk’s Grok AI chatbot into its platform for one year, sharing subscription revenues. This marks Telegram’s first major monetization effort, coinciding with its announcement of a $540 million profit in...
Telegram's TON token surged 16% following a $300 million investment and equity deal with Elon Musk's xAI to integrate the Grok chatbot into its platform exclusively for one year. This marks Telegram's first major monetization effort of its 1 billion monthly active users, with subscription revenues to be shared between the two companies.
The company reported its first-ever profit of $540 million in 2024 on $1.4 billion revenue, supported by 15 million paying users and rapid organic growth. Telegram forecasts continued growth with 2025 revenue expected to reach $2 billion and profits exceeding $700 million.
In addition, Telegram completed an oversubscribed $1.5 billion high-yield bond offering at a 9% yield, signaling strong investor confidence and suggesting potential plans for an IPO. Major backers include BlackRock, Citadel, and Mubadala. The bond offering also features an IPO-linked conversion option expiring in 2030, implying that a public listing remains a possibility.
However, Telegram’s future is fraught with uncertainty due to significant legal challenges facing founder Pavel Durov. He was arrested in France in August 2024 and indicted on multiple charges related to non-cooperation with child safety investigations. Durov is currently under judicial supervision with travel restrictions that have already blocked a planned U.S. investor visit.
This legal cloud poses risks to the company’s IPO ambitions, governance, and global operations, while also highlighting wider regulatory scrutiny of encrypted messaging platforms. Despite assurances that no Telegram user data will be used to train Grok, questions remain about the sustainability and regulatory implications of AI integration.
While the lucrative AI deal and bond raise demonstrate Telegram’s evolution into a profitable business, the platform’s long-term trajectory depends heavily on legal outcomes and the success of its product pivots. Whether Telegram becomes a tech giant or a cautionary tale will unfold alongside the resolution of these challenges.
Key Timeline:
- August 24, 2024: Pavel Durov arrested in France
- March 19, 2025: Telegram reaches 1 billion monthly active users
- May 12, 2025: French court bars Durov from traveling to the U.S.
- May 28, 2025: Announcement of xAI-Grok integration and $1.5 billion bond pricing