Unclear Status Surrounding $300M xAI Agreement for Telegram - Reasons for Delay
Telegram's $300 Million Deal with Elon Musk's xAI Remains Pending
Telegram, the cloud-based social media and messaging app, is in the process of securing a substantial investment from Elon Musk's artificial intelligence (AI) company, xAI. Tweets between Pavel Durov, the founder of Telegram, and Musk indicate that a deal is in place, but official paperwork is yet to be signed.
On May 28, Durov announced the agreement to integrate xAI's generative chatbot, Grox, across all Telegram apps, promising users access to what he described as "the best AI technology on the market" by summer 2025. The deal would grant Telegram $300 million in cash and equity, with the messaging app also earning a 50% share of the revenue from xAI's subscriptions sold on its platform. However, Musk later clarified that no formal agreement had been reached.
Meanwhile, Telegram is seeking to raise funds through a $1.5 billion bond offering, backed by finance giants, including BlackRock, Mubadala, and Citadel. The bond issuance would help Telegram refinance its existing debt and attract new investors.
The pending deal with xAI may have implications for Telegram's financial position, potentially providing a significant influx of capital, and ensuring a steady revenue stream. The integration of xAI's chatbot could also enhance the user experience, attracting more users and boosting market share. However, the delay in formalizing the agreement has created uncertainty, leading to fluctuations in related assets like Toncoin.
A source close to the matter suggests that the delay in signing the agreement could be a result of negotiations over the finer details. Both parties are reportedly still working towards finalizing the deal. As this story develops, further details will be reported.
The pending deal with Elon Musk's AI company, xAI, could potentially provide Telegram with a significant influx of capital and ensure a steady revenue stream, thanks to the $300 million investment in cash and equity. Additionally, the integration of xAI's generative chatbot, Grox, into Telegram's apps could lead to an enhanced user experience, attracting more users and boosting market share, provided the details of the agreement are finally hammered out.
