tl;dr
Telegram is seeking to raise $1.5 billion through a five-year bond offering backed by major investors like BlackRock, Mubadala, and Citadel. Concurrently, Telegram's founder Pavel Durov announced a pending $300 million deal with Elon Musk's AI company xAI to integrate xAI’s generative chatbot, Grox,...
Telegram announced a pending $300 million partnership with Elon Musk’s AI company xAI to integrate the Grox generative chatbot into its messaging platform by summer 2025. While Telegram’s founder, Pavel Durov, revealed the agreement on social media, Musk clarified that formal deal terms and paperwork are still pending.
Concurrently, Telegram is seeking to raise $1.5 billion through a five-year bond offering backed by major investors including BlackRock, Mubadala, and Citadel. The bond proceeds are intended to refinance existing debt maturing in 2026, building on previous buybacks funded with $400 million in cash. The bonds are expected to offer a yield of around 9%, with conversion options for investors if Telegram goes public.
The announcement caused notable volatility in Toncoin (TON), a cryptocurrency originally developed by Telegram’s team before becoming independent. Toncoin’s price jumped 23% following the partnership reveal but dipped 11% after Musk's clarification about the deal's unfinished paperwork.
This strategic financing and AI integration effort highlight Telegram’s aim to strengthen its financial position and technological edge in a competitive social media and messaging landscape. The partnership with xAI includes a revenue-sharing component where Telegram will collect 50% of subscription revenues from xAI’s offerings on its platform.
Overall, while the Telegram-xAI collaboration promises innovative enhancements for users, investors and followers should note the deal’s current tentative status and Telegram’s broader financial maneuvers to secure its future growth.