Musk Denies Telegram xAI Partnership Amid $300 Million Deal Uncertainty

Telegram’s proposed partnership with Elon Musk’s xAI has encountered uncertainty after Musk publicly denied that any agreement has been finalized. This development follows Telegram CEO Pavel Durov’s announcement of a purported $300 million deal to integrate xAI’s Grok chatbot into the messaging app.

On Wednesday, Durov stated that the two companies had agreed “in principle” to a one-year partnership. He claimed the deal included a $300 million cash-and-equity investment from xAI, plus 50% of the subscription revenue generated from Grok within Telegram. Grok was slated to be integrated across Telegram’s apps this summer, offering AI features such as smart search, message rewriting, and content moderation.

However, Musk refuted Durov’s announcement on X, stating, “No deal has been signed.” Following Musk’s rebuttal, Durov clarified that the agreement was still pending final documentation. This confusion arises at a pivotal moment for Telegram, which recently announced plans to raise $1.5 billion in a bond sale involving institutional investors.

Durov had indicated that the Grok partnership would strengthen Telegram’s financial position following its 2024 profit of $540 million. Despite the lack of a finalized deal, Toncoin (TON), Telegram’s associated crypto token, initially surged nearly 19% on the news before retreating after Musk’s response.

Musk’s denial has cast doubt on the potential partnership between Telegram and xAI, raising questions about the future of Grok and its integration into Telegram. The uncertainty surrounding Grok’s development and its impact on Telegram’s user base, which has grown due to its focus on privacy and security, has led to concerns about the potential fallout.

Both Telegram and xAI are facing increased scrutiny from regulators and law enforcement agencies. Telegram has been under investigation for its role in facilitating illegal activities, while xAI has been criticized for its lack of transparency and accountability. Musk’s denial may be an attempt to distance himself and xAI from any potential legal or regulatory issues that could arise from the integration with Telegram.

In conclusion, Musk’s denial has added complexity to the potential partnership between Telegram and xAI. While the true nature of their relationship remains unclear, both companies are navigating significant challenges and uncertainties in the current regulatory and legal landscape. As the situation evolves, it will be crucial for both companies to address these challenges carefully and prioritize transparency and accountability in their operations.