Telegram is betting big on AI, partnering with Elon Musk’s xAI to integrate its Grok AI technology into the messaging app. The deal involves a $300 million investment from xAI in cash and equity, with Telegram receiving 50% of the subscription revenue generated through the platform.
This move coincides with Telegram’s plans to raise $1.5 billion through bond issuance to repurchase existing debt, signaling investor confidence from entities like BlackRock, Mubadala, and Citadel.
After experiencing a loss in 2023, Telegram rebounded in 2024 with a $540 million profit on $1.4 billion in revenue, with projections indicating further growth to over $700 million profit on $2 billion in revenue for 2025. The incorporation of Grok AI is intended to enhance user experience by improving information retrieval, message composition, and overall automation, putting Telegram in direct competition with Meta’s AI-powered features on WhatsApp.
Pavel Durov, CEO of Telegram, announced via X in May 2025 that this partnership will bring top-tier AI to Telegram’s user base of over a billion people. The integration, facilitated through a one-year agreement with xAI and Elon Musk, also fortifies Telegram’s financial footing.
While Telegram embraces AI, it faces ongoing legal challenges for CEO Pavel Durov, including past accusations of facilitating child exploitation and drug trafficking. The platform also contends with government scrutiny, notably from Vietnam, which has blocked Telegram due to criminal activity concerns.
The partnership with xAI underscores Telegram’s commitment to AI as a key component of its future strategy. The significant investment and revenue-sharing model highlight the mutual belief in the transformative potential of Grok within Telegram. The coming year will be crucial in demonstrating Telegram’s capacity to innovate while maintaining responsible global operations.