Cocoon Challenges Big Tech's AI Monopoly with Privacy-First Blockchain

Telegram has launched Cocoon, a decentralized AI platform built on the TON blockchain, positioning it as a privacy-focused alternative to centralized AI services. The platform, announced by Telegram founder Pavel Durov, allows GPU owners to earn TON tokens by contributing computing power to process AI tasks while ensuring data confidentiality through Trusted Execution Environments (TEEs). Cocoon's launch marks a significant step in leveraging blockchain technology to democratize AI infrastructure, addressing concerns over data privacy and centralized control.

Durov emphasized that Cocoon addresses two critical issues in the current AI landscape: high costs and privacy risks. By decentralizing compute resources, the platform eliminates intermediaries like Amazon and Microsoft, which he described as "expensive and privacy-reducing" according to Durov. Users' data, including queries, training inputs, and outputs, remain encrypted throughout processing, a feature Cocoon highlights as a key differentiator from traditional providers. The network's design also enables rapid scalability, with GPU providers earning rewards as more participants join, potentially creating a global "community-owned AI" ecosystem as reported.

The platform's initial success is evident: GPU owners have already begun earning TON tokens, and the network has processed live user requests. Durov noted that tech funds backing TON have pledged substantial GPU farms to boost capacity, enabling Cocoon to handle complex tasks like large language model queries and video processing. This infrastructure support underscores the project's ambition to rival commercial providers while maintaining data security.

Critics of centralized AI, such as David Holtzman of Naoris, argue that blockchain-based solutions can mitigate risks by ensuring tamper-proof records and trustless node communication. A 2024 survey by the Digital Currency Group found 77% of respondents believed decentralized AI would benefit society more than centralized systems, reflecting growing public demand for privacy-first alternatives.

As Cocoon scales, its impact could extend beyond privacy advocacy. By redistributing AI infrastructure profits to hardware providers, the platform challenges the economic model of tech giants and aligns with broader trends toward self-sovereign digital ecosystems. However, its long-term success will depend on adoption rates, regulatory responses, and the ability to maintain security as the network expands.