Telegram has launched Cocoon, a decentralized confidential compute network built on the TON blockchain. Pavel Durov announced the launch in his Telegram channel on Sunday, stating that the system has begun processing the first AI queries from users with full privacy.

Durov emphasized that Cocoon already operates live, adding:

“GPU owners are already earning TON. https://cocoon.org is up, with docs and the source code.”

In his announcement, Durov criticized traditional cloud providers such as Amazon and Microsoft, saying they act as costly intermediaries that reduce privacy. He argued that Cocoon eliminates both issues by decentralizing compute power and adding a confidentiality layer.

“Now we scale. Over the next few weeks, we’ll be onboarding more GPU supply and bringing in more developer demand to Cocoon. Telegram users can expect new AI-related features built on 100% confidentiality. Cocoon will bring control and privacy back where they belong — with users.”

What Is Cocoon?

Cocoon is a decentralized AI inference network operating on TON. Its goal is to bridge GPU owners who want to supply computing power with developers who need to run AI models in a private environment.

The platform creates a verifiable, confidential compute layer for GPU providers, while giving developers an on-chain settlement system for executing model requests.

How the Network Works

According to the Cocoon website, the network operates on four core principles: GPU owners “mine” TON by supplying compute power, developers gain access to lower-cost AI processing, users receive AI outputs with full confidentiality, and Telegram drives demand for Cocoon-based features. All payments within the system are settled in TON.

Despite the scale of the announcement, TON did not show strength following the news. The token moved down with the market and failed to demonstrate a positive reaction.