Following the latest industry reports, Telegram has partnered with Elon Musk’s xAI for $300 million and raised $1.5 billion in high-yield bonds. The dual announcement on May 28, 2025 sent TON price soaring up 16%.
But this optimism is tempered by a dark cloud: CEO Pavel Durov’s ongoing legal battle in France where he faces 12 preliminary charges including non-cooperation with child safety investigations. The unfolding legal saga and questions around the Telegram and xAI partnership and high-yield debt makes Telegram’s future uncertain.
A Transformational Deal with xAI
Telegram’s decision to integrate Elon Musk’s Grok, xAI’s language model, into its messaging platform is its biggest monetization play yet. xAI will pay Telegram $300 million in cash, equity and 50% of all Grok subscription revenue on Telegram. This puts Telegram ahead of competitors like WhatsApp and Snapchat who have yet to monetize AI features.
“Together we win ❤️📈🏆” Durov posted on Telegram framing the deal as a game-changer for its 1 billion MAUs. He quickly added: “No Telegram data will be used for Grok training.”
Telegram and xAI’s $300M Deal
The Grok integration also has broader implications. As Telegram moves to monetize the platform, it’s moving away from donations and loans, Durov is now saying the company is operationally profitable for the first time. According to company disclosures, Telegram reportedly made $540 million profit in 2024 on $1.4 billion revenue, a huge turnaround from years of deficit driven growth.
Bond Raise Validates Telegram’s Business Model
Along with the Telegram and xAI announcement was Telegram’s $1.5 billion bond raise, oversubscribed and priced at 9% yield and backed by investors like BlackRock, Citadel and Mubadala. The bond not only refinances the 2021 convertible note but also has a conversion kicker tied to an IPO before 2030.
This implies investors believe in Telegram’s monetization and unit economics but the high yield bond is seen as a bridge loan to hedge against Durov’s legal issues.
Legal Headwinds May Slow Momentum
CEO Pavel Durov’s arrest in France in August 2024 complicated the optimism around Telegram’s platform. French authorities charged him with 12 preliminary counts, including obstruction of child safety investigations. A May 12, 2025 court ruling barred him from traveling to the US to meet with investors, which could delay or derail the company’s IPO plans.
“We followed all the legal requests we received,” Durov told The Wall Street Journal. “Up until this day we don’t understand what we did wrong.”
Durov is still under judicial supervision in France and the company’s legal team is disputing the allegations, saying they comply with the regulations. But the legal battle raises governance concerns and regulatory scrutiny for a platform that has always prided itself on end-to-end encryption and user privacy.
TON Soars
In the meantime, The Open Network (TON), Telegram’s blockchain project, rose 15% after the Telegram and xAI announcement. Currently, TON is trading at $3.32, up by 11.50% in the last 24hrs. This is a sign of investor confidence in increased user engagement and monetization through AI. Experts say the momentum is an indication of the growing connection between Telegram’s platform evolution and TON’s price.
Telegram and xAI’s $300M Deal
While the bond has a conversion feature tied to an IPO, analysts are divided. Some see this as a clear sign Telegram is going public in the next 5 years. Others think the high yield and Durov’s legal issues mean it’s a cautious hedge, allowing the company to scale without immediate public market exposure.
The one-year exclusivity of the Telegram and xAI deal also raises questions: Can Grok deliver sustained user engagement? Will xAI meet its revenue commitments? Will regulatory scrutiny, especially around data privacy, complicate implementation despite Durov’s assurances?
Conclusion: A Platform at a Crossroads
Telegram has moved from a loss-making outlier to a profitable tech company, with a big user base, growing revenue streams and now a major AI partnership. But the unresolved legal issues around its founder could complicate these advances and determine if Telegram becomes a tech IPO success story or a tale of woes.
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FAQs
How much is xAI paying Telegram?
$300 million in cash, equity stakes and 50% of Grok subscription revenue.
What’s Pavel Durov up against?
12 preliminary charges in France for non-cooperation with child safety investigations.
How much did Telegram raise from the bond offering?
$1.5 billion at 9%.
What happened to TON?
TON went up 15% after the xAI announcement.
Glossary
xAI: Elon’s AI venture for Grok.
Grok: xAI’s large language model chatbot.
IPO: Initial Public Offering; when a company goes public.
TON: The Open Network, Telegram’s blockchain.
MAUs: Monthly Active Users.
Sources
Wall Street Journal
Cryptoslate
Pavel Durov on X
Read More: TON Soars 15% After $300M AI Deal But Can Durov’s Legal Battle Derail the Rally?">TON Soars 15% After $300M AI Deal But Can Durov’s Legal Battle Derail the Rally?
