Elon Musk Denies Telegram Deal for Grok AI Integration

Elon Musk, the CEO of xAI, clarified on May 28 that no formal agreement had been signed with Telegram regarding the distribution of the Grok large language model, despite earlier announcements by Telegram founder Pavel Durov. Durov had previously stated that he and Musk had agreed to a one-year partnership that would integrate Grok into all Telegram applications, providing the chat platform with $300 million in cash and equity, along with half of every Grok subscription sold through Telegram.

Musk's clarification came hours after Durov's announcement, stating that "no deal has been signed." Durov acknowledged this point, noting that while the two sides had agreed in principle, the formalities were still pending. Neither party provided a timeline for completing the final paperwork or launching the project.

Telegram is currently carrying over $1 billion in debt linked to bond issues floated in 2021 and 2023 to fund operations. Durov, who has historically financed the company through personal loans, is seeking new income streams before a bond maturity next year. Under the draft terms, xAI would wire $300 million to Telegram and place an equity stake, the specifics of which both companies declined to quantify. Telegram would also receive a recurring share of Grok fees collected through its in-app purchase channels.

Musk launched xAI last July to train Grok on public data and content licensed from X. The model competes with other leading AI models such as OpenAI’s ChatGPT, Anthropic’s Claude, and Google’s Gemini. A Telegram integration would give Grok an immediate reach larger than X’s roughly 600 million registered accounts.

Musk's statement on the unsigned contract coincided with his departure from his temporary seat at the US Department of Government Efficiency, known internally as DOGE. The White House confirmed on May 28 that Musk's 130-day allotment as a special government employee ends this week. Musk confirmed his departure in a May 28 X post, thanking President Donald Trump for the appointment and reiterating his goal of reducing federal spending. Musk filled the designation of “special government employee,” which allows him to work a federal job for 130 days each year. Considering Trump’s first day at the White House on January 20, the designation would expire at the end of May.