Elon Musk’s xAI and Telegram have struck a $300 million deal raising serious concerns about privacy and security as Telegram CEO Pavel Durov faces legal troubles in France and is prohibited from traveling to the United States.
Key Takeaways
- Elon Musk’s xAI is investing $300 million in cash and equity to integrate its Grok AI chatbot into Telegram’s platform
- Telegram will receive 50% of revenue from xAI subscriptions purchased through the app
- Privacy concerns surround the deal as Telegram’s default settings don’t include encryption
- Telegram CEO Pavel Durov is currently facing legal troubles in France and is unable to travel to the US
- Grok has previously faced criticism for spreading conspiracy theories despite its technological advancements
A $300 Million Partnership with Significant Implications
In a major development for both companies, Elon Musk’s artificial intelligence venture xAI has formed a partnership with messaging platform Telegram. The agreement involves a substantial $300 million investment in cash and equity to integrate xAI’s chatbot, Grok, into Telegram’s ecosystem. This one-year milestone partnership represents one of the most significant financial deals in the AI messaging space, with potential access to Telegram’s hundreds of millions of users worldwide. The arrangement could dramatically expand Grok’s user base while providing Telegram with cutting-edge AI functionality.
“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.
Previously only available to Telegram’s premium subscribers, Grok will likely become accessible to all Telegram users through this new partnership. Durov demonstrated that Grok can be pinned at the top of chats and accessed via the search bar, making it prominently available throughout the app’s interface. The AI assistant’s capabilities are extensive, including writing suggestions, summarizing conversations and documents, creating stickers, answering business inquiries, and even assisting with content moderation. The financial arrangement is structured to benefit both companies substantially.
Revenue Sharing and Growing Concerns
Beyond the initial $300 million investment, the partnership includes a significant revenue-sharing component that could prove highly lucrative for Telegram. The messaging platform stands to gain a substantial portion of subscription fees generated through the integration, creating an ongoing revenue stream beyond the initial investment. This arrangement demonstrates the potential value both companies see in bringing advanced AI capabilities to Telegram’s user base, while creating financial incentives for both parties to promote premium AI services.
“Durov said Telegram will also earn 50% of the revenue from xAI subscriptions purchased through the app,” said Pavel Durov.
However, the partnership raises serious concerns about privacy and security. Telegram has faced criticism for its default settings, which do not include end-to-end encryption—a standard security feature in many competing messaging apps. This lack of default encryption has raised questions about how user data might be accessed or shared, particularly with the introduction of an AI system that will process user conversations. The Atlantic Council’s DFRLab has previously documented Telegram’s use by Russian authorities for influence operations, adding another layer of concern to this partnership.
Legal Troubles and Controversies
The partnership comes at a challenging time for Telegram’s CEO Pavel Durov, who is currently facing serious legal issues in France. Durov was arrested on charges related to Telegram’s alleged facilitation of illegal activities on its platform, though he was subsequently released on bail. He remains in Paris under court supervision, required to regularly report to police, and has been denied permission to travel to the United States for investment discussions. These restrictions have complicated Telegram’s business operations at a critical juncture for the company.
Meanwhile, xAI’s Grok has faced its own controversies. The AI assistant has been criticized for spreading conspiracy theories in some instances, raising questions about content moderation and AI ethics. Despite these controversies, Grok has gained recognition for its technological capabilities, ranking eighth on the HuggingFace leaderboard for model effectiveness. Microsoft has even added Grok 3 to its Azure platform, indicating the technology’s competitive standing in the AI field despite ethical concerns surrounding some of its outputs.
The Future of AI on Telegram
As this partnership unfolds, users and industry observers will be watching closely to see how Telegram implements privacy protections around Grok’s integration. Durov has attempted to reassure users that xAI will only access data explicitly shared with Grok, but skepticism remains given Telegram’s track record on privacy and security issues. The platform’s history of data sharing with authorities in certain jurisdictions has created trust issues that may affect user adoption of the new AI features, particularly among privacy-conscious users.
For President Trump’s supporters and conservatives concerned about big tech overreach, this partnership represents another example of consolidation in the tech industry. It combines Musk’s growing influence in AI with Telegram’s massive user base, creating significant questions about data privacy, content moderation policies, and the concentration of technological power. As conservative users increasingly seek alternatives to mainstream tech platforms, this development warrants careful attention to how user data and content will be handled under this new arrangement.
